The central bank of Nepal, Nepal Rastra Bank is provisioning compulsory insurance for bank's investment. According to this, debtor can't get loan until the business doesn't get insured. this provision is going to be mentioned in monetary policy of fiscal year 2075/76.
Along with the implementation of this provision, the risk of banks will be taken by insurance companies. Banks won't be affected even if the loan is insecure as the loan will be covered by insurance companies.
Banks are practicing this provision now in their interest. But now onwards, banks are being compelled through monetary policy itself.
