Development Banks in Nepal: Updated [2025]

Development banks in Nepal, classified as Class B financial institutions by the Nepal Rastra Bank (NRB), are designed to provide medium to long-term financing for economic development. These banks play an essential role in financing infrastructure, agriculture, small and medium enterprises (SMEs), and regional development—sectors that require patient capital and specialized lending.

This article provides an updated list of all licensed development banks in Nepal, along with answers to frequently asked questions based on the latest official data from NRB as of December 2024.

Total Number of Development Banks in Nepal

According to NRB’s official data, there are17 licensed Class B development banks operating in Nepal. These include 8 national-level development banks and 9 provincial or district-level institutions.

List of Development Banks in Nepal

The following table provides an updated list of all licensed development banks operating in Nepal, categorized by their operational scope.

1. National-Level Development Banks

These banks operate across all provinces of Nepal and play a significant role in driving nationwide economic development.

2. Provincial and District-Level Development Banks

These banks focus on specific provinces or districts, promoting regional development and financial inclusion in local communities.

What Is a Development Bank?

A development bank is a financial institution that provides medium- and long-term credit for projects that contribute to economic growth. In Nepal, development banks specialize in financing areas like agriculture, infrastructure, hydropower, tourism, and SMEs. Their operations complement commercial banks, which generally focus on short-term lending and retail services.

Why Are Development Banks Important?

Regulation by Nepal Rastra Bank

All development banks in Nepal operate under the Bank and Financial Institution Act (BAFIA) and are supervised by the Nepal Rastra Bank. NRB monitors their capital adequacy, asset quality, governance, and compliance with financial regulations to ensure stability and protect depositors.

FAQs About Development Banks in Nepal

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