Banking Exam Question - What are the NRB Directives (2074) Regarding Loan Against Overdraft & Revolving Nature Transaction? Explain

Introduction - Regarding Loan Against Revolving Nature

The banks and financial institutions will flow when the individual loans flow over the Revolving form including Overdraft. Only 75 million can flow. The flow of such loan flowing before this directive may be issued within that period within 2074 Ashad. The bank and financial institutions reported the flow of debt to the personal debt of the Revolving Prices. 

As Per Nepal Rastra Bank Instruction Form Darta No. 2.4, prepared in the form of 2.4 and quarterly details, it will be presented in the relevant supervision department of this bank within fifty five days of such termination. However, the system will not be considered to provide deposited receipt of the licensed institution and the loan of gold silver, issuing bail in cent percent cash margin, and loans to the banks of the Nepal government and the Nepal Bank of Nepal.

Revolving Loan is an arrangement which allows for the loan amount to be withdrawn, repaid, and redrawn again in any manner and any number of times, until the arrangement expires. Credit card loans and overdrafts are revolving loans, also called evergreen loan.