NRB Expresses Serious Concern Over Recent Incidents Targeting BFIs

Nepal Rastra Bank (NRB) has expressed serious concern over recent incidents targeting banks and financial institutions (BFIs). The central bank stated that the joint efforts of the Government of Nepal, NRB, and BFIs have ensured the presence of banking services in all local levels, making it easier for the public to access deposit, credit, remittance, and social security-related financial services at the local level.

NRB clarified that, in line with the Banks and Financial Institutions Act, 2073, and its directives, credit disbursement, monitoring of loan-financed projects, and loan recovery are the core responsibilities of BFIs. As BFIs mobilize public deposits for lending, failure to recover loans may affect deposit repayment and liquidity, making timely loan repayment by borrowers essential. However, to address genuine difficulties arising from adverse circumstances, NRB has been facilitating measures such as loan restructuring and rescheduling from time to time.

The central bank also noted that mechanisms are in place at both the concerned institutions and NRB for grievance handling, allowing customers to file complaints if they feel aggrieved and seek resolution.

NRB warned that non-professional and unruly activities against BFIs and their employees could disrupt financial intermediation and adversely affect financial services. It urged all concerned to refrain from actions that hinder the delivery of financial services. The central bank further stated that individuals engaging in irresponsible behavior or disruptive activities against BFIs or their staff will be subject to action in accordance with prevailing laws, while encouraging financial sector employees to continue their work with high morale.