KATHMANDU: Nepal Rastra Bank (NRB) has said it has taken serious note of recent incidents targeting banks and financial institutions.
In a statement, the central bank noted that due to the combined efforts of the government, Nepal Rastra Bank, and banks and financial institutions, banking services have expanded to all local levels.
This expansion has made it easier for the general public to deposit savings, obtain loans, receive remittances, and access financial services, including the distribution of social security funds, at the local level.
The statement said that banks and financial institutions are mandated to provide loans, monitor loan-financed projects, and recover loans in accordance with the Bank and Financial Institutions Act, 2073 BS, and directives issued by the central bank.
Since banks mobilize deposits collected from the public to extend loans, failure to repay loans affects liquidity and, ultimately, the ability of banks to return deposits. Therefore, borrowers are required to repay their loans on a regular basis.
Nepal Rastra Bank clarified that it has been facilitating loan restructuring and rescheduling from time to time to address difficulties arising from adverse circumstances.
It also stated that there are established grievance-handling mechanisms at both the concerned financial institutions and the central bank to address customer complaints related to banking transactions.
The central bank urged all concerned not to engage in unprofessional or illegal activities that disrupt financial services, noting that actions against banks, financial institutions, or their employees could hinder the smooth mobilization of financial resources.
Rastra Bank further requested employees in the financial sector to continue working with high morale and warned that legal action will be taken against individuals or groups involved in disorderly or illegal activities targeting banks, financial institutions, or their staff.
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