Banks Can Show Interest Earned Until July 30 as Income

Kathmandu. Banks and financial institutions will be able to show the interest earned until July 30 as income for this year.

The central bank has given this exemption by making special arrangements regarding the accounting of banks and financial institutions.

In the directive issued by Nepal Rastra Bank on Wednesday, it has been arranged to deposit in the regulatory fund an amount equal to the interest income that is yet to be received, other than the interest received within 15 days of the end of the financial year.

Previously, there was a provision to deposit in such a fund anything other than the amount received within the financial year.

It was estimated that the arrangement to consider income up to the end of Asar as regular income would affect the dividend capacity of banks. With this directive from the central bank, banks will be able to strive to collect interest for another 15 days.