Business
Nepal Rastra Bank has given eligible borrowers affected by the Bhotekoshi and Budhigandaki floods three additional months to meet loan instalments that were due by mid October 2026. The central bank issued the relevant circulars on Tuesday, October 13, and The Rising Nepal reported the change on Wednesday, October 14. Under the new provision, qualifying principal and interest payments may be moved to mid January 2027. The measure changes the payment deadline, but it does not cancel the debt or automatically waive interest.
The scope is tied to the economic effects of the two river floods and the disruption around the Rasuwa Customs Point. It covers enterprises, projects and businesses directly affected in the Bhotekoshi and Budhigandaki areas. It also covers businesses whose imports or exports of raw materials, semi finished goods or finished products depend on Rasuwa customs, as well as other borrowers affected in the designated flood hit areas. That wording means eligibility depends on a documented connection to the disruption rather than simply having an outstanding bank loan.
Banks and financial institutions must make a realistic assessment before granting extra time. The reported criteria include the borrower’s sales and income, cash flow, reserve funds, the effect on imports and exports, and whether the loan was used for its stated purpose. The extension is intended for borrowers who are genuinely facing repayment difficulty. In practical terms, the decision remains with the lender after reviewing the borrower’s position, so businesses should not assume that every payment date will change without communication and supporting records.
The October 13 official archive shows separate circulars for Class A, B and C institutions, the infrastructure development bank and Class D microfinance institutions. The Rising Nepal reported that Nepal Infrastructure Development Bank is subject to equivalent conditions. Microfinance institutions must also examine the financial circumstances of affected clients before extending their repayment deadline. The parallel circulars matter because flood related credit is not confined to commercial banks and can involve infrastructure projects, smaller enterprises and microfinance borrowers.
This three month window forms part of a wider series of financial service measures after the floods. On September 1, the central bank instructed institutions to help customers who had lost cheques, cards, mobile phones or other documents needed for transactions. Banks could verify identity through specimen signatures, photographs and existing customer records. On August 29, affected branches were also permitted to relocate or merge temporarily with nearby branches without prior approval, provided Nepal Rastra Bank was informed within seven days.
A separate October 13 instruction addresses electronic fraud during Bijaya Dashami, Tihar and Chhath. Commercial banks, development banks and finance companies were told to appoint a focal person and provide Nepal Police with contact details and an email address monitored around the clock. Institutions were also directed to identify suspicious accounts and transactions, freeze them promptly when required and support investigations. This anti fraud measure is distinct from the flood related repayment extension, although both were issued in the same period.
For affected borrowers, the confirmed development is a possible shift of eligible mid October principal or interest instalments to mid January 2027, subject to lender assessment. A sensible next step is to contact the relevant institution, ask which circular applies and provide evidence of flood damage, customs disruption, reduced sales or cash flow pressure. That is a practical implication of the directive, not a guarantee of approval. Borrowers should continue to rely on written confirmation from their own bank or microfinance institution before changing any repayment plan.
Source publication date: 2026-10-14. Event or reporting period: 2026-10-13.
Sources:The Rising Nepal · Nepal Rastra Bank · Khabarhub · Ministry of Finance Nepal
Source: GPT News Feed
