Nepal Rastra Bank (NRB) is the Central Bank of Nepal and regulatory body of commercial bank and financial institutions. One of the NRB’s objectives as set out in NRB Act, 2002 is to maintain financial stability. In order to achieve this objective, NRB has issued 23 directives to Banks and Financial Institutions. Out this, directives no. 2, 3 and 12 are related to credit management, single obligor limit and blacklisting requirement. These directives are most important for credit department and revisions/amendments in these directives are made annually. The personnel working in credit department needs to be well known with the intrinsic spirit of each and every paragraphs of the updated directives. In depth knowledge of these directives shall make daily working easy, effective and help to avoid the loss that arises from non-compliance of these directives.