Development Banks

In Nepal, development banks are licensed by Nepal Rastra Bank (NRB)—the central bank—and categorized as Class 'B' financial institutions. They operate under the Bank and Financial Institutions Act (BAFIA) and are allowed to carry out banking activities such as:

• Accepting deposits
• Providing loans (especially long-term and project financing)
• Investing in productive sectors

Roles of Development Banks in Nepal:

• Financing agriculture and rural development
• Supporting small-scale industries and entrepreneurs
• Promoting financial inclusion in remote areas
• Helping generate employment and reduce poverty

Types of Development Banks in Nepal:

Nepal has two main categories of development banks:

1. National Level Development Banks
   • Operate across the whole country.
2. Regional or Local Level Development Banks
   • Operate in specific regions or districts.

List of Development Banks in Nepal: