Government Prepares Legal Framework to Legalize P2P Lending

The Nepal government plans to introduce legal regulations for peer-to-peer (P2P) lending through Nepal Rastra Bank within the current fiscal year. Speaking at the Finance Committee meeting of the House of Representatives, Finance Minister Swarnim Wagle stated that the cabinet subcommittee has finalized the legal wording to formalize P2P lending. He noted that relevant provisions will be included in the upcoming Payment and Settlement Bill. The initiative is part of a broader push to enforce and revise laws outlined in this year's budget. The current budget covers 431 actionable points across roughly 80 sections, with commitments to pass around 27 laws and repeal about 15 outdated acts to create a more investment friendly environment. Out of the proposed 27 new laws, eight to nine fall under the Ministry of Industry, while six to seven belong to the Ministry of Finance. Additionally, the government reported strong revenue collection, exceeding NPR 100 billion since the start of the fiscal year.