Message From CEO


Deposit And Credit Guarantee fund (DCGF), established under prevailing Companies Act, 2021, on 20th September, 1974 in the name of Credit Guarantee Corporation under the initiation and equity participation of Nepal Rastra Bank(Central Bank of Nepal), Rastriya Banijya Bank and Nepal Bank Limited with 10 million of authorized capital and 3 million of paid up capital has been renamed to Deposit and Credit Guarantee Fund with the current promulgation of Deposit and Credit Guarantee Fund Act, 2017. At present, the authorized capital of the fund has been increased by 1,000 folds to Rs. 10 billion whereas the paid-up capital has reached the landmark of 8 billion.

The Fund has diversified its scope of areas and streamlined its business in the current period which was limited for the priority sector lending of Rastriya Banijya Bank and Nepal Bank Limited up to the maximum limit of 2.50 million during the initial phase of establishment. Recently, the Fund is serving in the following different sectors viz:

           1. Deposit Guarantee and

           2. Credit Guarantee

                        a)  Micro Finance and Deprived Sector Credit Guarantee

                         b) Agricultural Credit Guarantee

                         c) Educational Credit and Educated Unemployment Business Credit Guarantee

                        d) Small and Medium Enterprises Credit Guarantee

                        e) Livestock Guarantee

This fund, which provides protection to the above mentioned areas, has planned to promote self employment in the near future and provide financial assistance to diverse businesses, and to provide security to existing loans provided by banks and financial institutions up to the limit of 100 million.

During the initial phase of establishment, the fund was operated with 7 employees from the premises of Nepal Rastra Bank. Currently, it has expanded its network through 7 different branches with 62 employees including central office and branches to cover all the provinces of the country. The fund has kept the order to expand its workforce and working areas in priority.

The guarantee limit per individual which was restricted to 2.5 million at the time of establishment has been amplified to 20 million at present. In addition, fund has planned to provide guarantee for export sectors up to the limit of 100 million provided per industry/individual by the banks and financial institutions.

In order to make branch offices more proactive, arrangements are being made to provide authority to the branches to guarantee credit and provide compensation against the loans disbursed by the banks and financial institutions having their central office at that province.

The fund expresses the commitment to further enhance and diversify its sectors and services so as to grasp the international standards altering its traditional practices and mechanism. In addition, to improve the current work done by the fund regarding deposit guarantee and credit guarantee from the same organization, the fund will be partitioned into two separate institutions which shall oversee deposit guarantee and credit guarantee separately and give reliable and qualitative services.

Bishnu Babu Mishra

Chief Executive Officer