Banks allowed to merge sub-metropolitan and municipal branches too; must open 1 new branch in village for every 4 closed

Nepal Rastra Bank has made it easier for banks and financial institutions to adjust their branch offices. The central bank issued a notice to this effect on Friday.

Under the new provision, banks and financial institutions will not need Rastra Bank's approval to adjust or merge branches within metropolitan cities. Urban-area branches within sub-metropolitan cities and municipalities can also be adjusted and merged with one another.

However, a condition has been set for municipalities: for every four urban branches closed, one new branch must be opened in a rural area. Rastra Bank has also said that staff cannot be removed when branches are adjusted.

The central bank made this provision with the aim of easing the reduction of physical branches as electronic transactions increase.