Nepal's Banking Sector: BFI Classification

Details

Nepal's banking and financial institutions (BFIs) are licensed and regulated by Nepal Rastra Bank (NRB) under the Bank and Financial Institutions Act (BAFIA), 2017. They are categorized into four distinct classes based on minimum capital requirements and scope of operations.

BFI Classification (As of 2024/2025)

Class	Type of Institution	Minimum Paid-up Capital	Approximate Count
Class A	Commercial Banks	NPR $8$ Billion	$20$
Class B	Development Banks	NPR $1.2$ to $2.5$ Billion	$17$
Class C	Finance Companies	NPR $800$ Million	$17$
Class D	Microfinance Institutions	NPR $100$ to $600$ Million	~$54$

Special Category Institutions

Infrastructure Development Bank (NIFRA): Requires a minimum paid-up capital of NPR $20$ Billion.
Regulatory Trend: The overall number of BFIs has significantly decreased over the past decade due to NRB's aggressive merger and acquisition policies aimed at strengthening financial stability.

Category

Banking

Fiscal Year

2082

Key Figure/Rate

20 Commercial, 17 Development, 17 Finance, ~54 MFIs