Ban on bank branches hits traders
PARSA, JAN 22 -
Parsa-based traders have complained that the Nepal Rastra Bank’s ( NRB ) ban on 13 branches of nine commercial bank s from carrying out Indian currency (IC) transactions has created problems for them.
On January 3, the central bank imposed the ban on the bank branches after a probe established their involvement in IC misappropriation worth more than IRs 1.23 billion.
The bank branches facing the ban are four branches of NIC Bank in Birgunj, Hariaun, Pepsikola and Bhaktapur; two branches of Nepal SBI bank s in Parsa’s Adarshanagar and Shreepur; and Birgunj branches of Everest Bank, Nepal Investment Bank, Laxmi Bank, Citizens Bank, Siddhartha Bank, Nepal Bank Limited and Nepal Bangladesh Bank.
The investigation had found that the aforementioned bank branches issued IC bank drafts to traders against fake customs clearance documents deliberately, according to the Department of Revenue Investigation (DRI).
Traders involved in Nepal-India trade have complained that they are facing difficulties in carrying out bank ing transactions due to the ban on these bank branches.
Ashok Vaidhya, president of Birgunj Chamber of Commerce, said traders have suffered due to the sudden action taken by the NRB against these bank s as a majority of traders here do bank ing transactions with these bank s.
Birgunj Chambers’ vice-president Subodh Kumar Gupta said as most of the Parsa-based traders are involved in Nepal-India trade, the ban on these bank s has especially hit them. “We have been asking to authorities concerned to solve this problem, but they have not acted so far,” complained Gupta.
Small retail shop owners, who import edibles and vegetables, have also been affected badly. “We used to send IC through these bank s to import onion from India,” said Vaidya. “Now, the stock of potatoes and onion is running out, but are failing to import the vegetables from India.”
NRB spokesperson Bhaskar Mani Gyawali said the bank s faced the action after they were found involved in faulty IC transaction. “If the bank s express their commitment that they would not repeat the mistake, we may lift the ban,” he said.
The central bank has made it clear that the ban on the bank s will continue until they satisfy the central bank that their IC transaction system is ‘safe enough’. It has also maintained that the bank s should take action against their employees involved in the scam as per their employee bylaws.
The investigation had found that the IC amount was withdrawn in the name of Birgunj-based Maxwell Computer, Shyam Galla Bhandar, Jaya Mata Di International, Digital World, GS Traders, Jaya Baba Amarnath, Gangotri Galla Bandar and Nitesh Brothers.
The scandal was exposed only after five Indian nationals — Sandeep Kumar Shah, Ramesh Kumar Shah, Mukul Bhusan Krishna, Sukesh Kumar Mishra and Arabinda Kumar Shah — were arrested in possession of fake customs clearance documents in September 2011.
The DRI had filed case against 12 persons involved in the scam, but the Parsa District Court released them on bail in June 2012.
Source: The Kathmandu Post
