NRB’s New Credit Policy 2082: Single Obligor Limit Removed to Boost Large Project Financing

Nepal Rastra Bank (NRB) has introduced a major reform under its Unified Directives 2082 (2025 AD) by removing the Single Obligor Limit (SOL) — the long-standing rule that restricted banks and financial institutions from lending more than NPR 25 crore to a single borrower or a group of related parties without prior approval. This marks one of the most significant liberalizations in Nepal’s banking sector in recent years, intended to encourage large-scale project financing, accelerate credit growth, and support economic recovery.

Previously, NRB’s 25-crore cap acted as a safeguard against excessive lending exposure to a single borrower. The regulation ensured that no bank concentrated too much credit risk in one client, thus maintaining financial stability. However, it also became a barrier to financing large infrastructure and industrial projects, particularly in sectors like hydropower, manufacturing, and construction — where capital requirements often exceed this limit.

With the new 2082 directive, NRB has given banks complete autonomy to determine lending amounts based on their internal credit risk management systems and board-approved exposure policies. This transition from regulatory control to institutional responsibility reflects the central bank’s growing confidence in the maturity of Nepal’s financial institutions. Banks are now expected to strengthen their risk governance frameworks, diversify exposure, and ensure proper due diligence before sanctioning large loans.

This policy change is designed to mobilize idle liquidity in the banking system towards productive sectors, supporting government goals of investment-driven economic growth. In recent months, banks have faced slow credit expansion despite high liquidity levels, and this reform aims to reinvigorate lending momentum by freeing financial institutions from rigid approval procedures.

For businesses, especially large corporate houses, hydropower developers, and industrial groups, this is a transformative development. It allows easier access to capital for big-ticket projects and opens opportunities for joint ventures and infrastructure development. However, this new freedom also comes with responsibility — both banks and borrowers must ensure financial discipline and transparency to prevent the misuse of credit.

Analysts view this as a historic policy shift, balancing flexibility with accountability. By eliminating the Single Obligor Limit, NRB has paved the way for greater credit flow, project-level financing efficiency, and a more dynamic financial ecosystem that aligns with Nepal’s evolving economic ambitions.