Nepal Rastra Bank directs BFIs to join social security scheme; direction was issued after the government asked for it

Nepal Rastra Bank has directed banks and financial institutions (BFIs) to join the social security scheme based on contribution. The NRB issued such direction at a time when the BFIs have been reluctant to do so.

The central bank of the country issued a notice asking BFIs to mandatorily get their employees listed in the contribution-based social security scheme. NRB Spokesperson Laxmi Prapanna Niraula said such direction was issued after the government asked for it.

"The BFIs of grade 'A', 'B', 'C' and 'D' are urged to be listed in the social security scheme, Social Security Act, Regulation, Contribution-based Social Security Operation Work Procedure," said the notice bearing signature of Director of BFIs Regulation Department of NRB, Deb Kumar Dhakal.

Reasoning that BFIs did not join social security scheme despite extension of the deadline, the Ministry of Labor had directed the NRB to issue notice to this end.

The scheme has aimed at ensuring secure future of workers. However, the BFIs were not ready for it, showing reservation.

Till now, 131,577 workers and 11,797 employers have been enlisted in the social security scheme.