Kathmandu: Banks and financial institutions will now be allowed to spend their Corporate Social Responsibility (CSR) funds on students studying in faculties of economics, law, and management.
Nepal Rastra Bank has made this provision by amending the Guidelines on CSR for Banks and Financial Institutions, 2024.
Under the special initiative of NRB Governor Dr Bishwanath Paudel, CSR funds can now be utilized in these faculties. According to NRB officials, the provision was introduced with the objective of enabling poor but diligent students to become skilled economists by funding such education through CSR.
The amended procedure states: “For poor and low-income students studying in faculties of economics, law, and management at universities and colleges, expenses related to fellowships and research grants for postgraduate, MPhil, and PhD-level research and studies can be covered, based on recommendations from the concerned university or college.”
Banks and financial institutions are required to allocate 1 percent of their profit to CSR, amounting to around Rs 800 million in total.
Since banks and financial institutions had been spending CSR funds without proper direction, the Supreme Court had earlier issued a directive order instructing the government to legally ensure such funds are used for the benefit of the poor.
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