Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has clamped down on the misuse of Corporate Social Responsibility (CSR) funds by banks and financial institutions, barring them from spending on entities linked to founders, board members, or top executives. Issuing the “Guideline 2081,” the central bank has also prohibited CSR spending tied to business expansion or activities like marketing campaigns, event sponsorships, political contributions, profit-driven projects, or advertisements.
Instead, CSR funds must focus on public welfare, such as building infrastructure in government schools and colleges, providing scholarships to underprivileged students, supplying educational tools, and ensuring clean water and sanitation facilities. Health-related spending is also permitted, including medical equipment for community health centers, treatment support for low-income patients, and assistive devices for the disabled.
The NRB has greenlit hospital operations for staff and public healthcare but excluded service promotion deals from CSR classification. Environmental initiatives like urban tree planting, pollution control, and Himalayan waste management are also eligible, pending approvals.
Under new rules, banks can deposit up to NPR 100 per account under the “Let’s Open Bank Accounts” campaign without counting it as CSR. National banks must spread CSR spending across all provinces, with at least 10% per province, and cap single-program spending at 5% of the annual CSR budget—unless a joint public-interest project is approved by NRB.
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