The decision was made as Nepal Rastra Bank Governer Chiranjeevi Nepal unveiled the central bank’s monetary policy for this fiscal in the Capital on Thursday. The minimum paid-up capital for commercial banks was increased from Rs2 billion.

Nepal said the paid-up capital for development banks will be fixed between Rs500 million and Rs1.2 billion as per their working area. The existing requirement is Rs640 million. Likewise, the minimum paid-up capital requirement for finance companies will be increased from Rs200 million to between Rs400 million to Rs800 million, Nepal said.

A new concept introduced by Governor Nepal is Infrastructure Development Bank, which will be a joint venture with a paid up capital of Rs20 billion.