Nepal, Feb. 26 -- In a bid to steer credit towards productive industries, Nepal Rastra Bank (NRB) has announced plans to increase lending to the production sector and expand credit limits for agriculture, energy, and micro, cottage, and small enterprises.

Presenting the mid-term review of the Monetary Policy for 2025/26 on Tuesday, the central bank introduced revisions to the mandatory minimum credit ratio that Banks and Financial Institutions (BFIs) must maintain for priority sectors. The new credit extension limits will also apply to tourism, information technology, and export-oriented businesses that utilize locally produced raw materials.

This policy shift comes at a time when BFIs have been favoring consumer lending over production...