Jyoti Bikas Bank Employees Smeared with Black Ink by Locals in Saptari
15th December 2025, Kathmandu
A significant incident of public protest and conflict unfolded in Rupani, Saptari, involving employees of Jyoti Bikas Bank. On Mangsir 25 (December 11), two employees of the bank were publicly targeted by local residents who smeared them with black ink.
Jyoti Bank Employees Assault
This action was a stark display of the community’s deep dissatisfaction and protest against the perceived aggressive methods used by the bank staff during loan recovery efforts.
The incident has drawn widespread public attention, particularly after video footage of the event quickly became viral across various social media platforms, intensifying the controversy surrounding the matter and raising serious questions about the ethics of debt collection practices by financial institutions in Nepal.
Allegations of Misconduct During Loan Recovery
According to reports from local sources and prevailing sentiment among community members, the incident was a direct reaction to alleged misconduct and high-pressure tactics employed by the bank employees against borrowers who had fallen into arrears with their loan repayments.
Humiliation and Abuse: The core of the local residents’ accusation is that the bank employees, while engaging in loan recovery activities, had allegedly humiliated family members of the borrowers. Furthermore, they were accused of utilizing abusive language and deliberately employing methods that caused significant mental stress to the indebted families.
Repetitive Pressure: Locals detailed that the bank staff had repeatedly visited the homes of borrowers to exert pressure for installment payments due to irregular loan repayments. This constant and aggressive pursuit of debt collection created an environment of fear and tension within the community.
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Social Dignity and Resentment: The most damaging allegation was that the behavior of the bank staff was conducted in a manner that negatively affected the social reputation and dignity of the families. In many closely-knit Nepali communities, maintaining social reputation is paramount. The perceived attempt to damage this standing through public pressure and aggressive tactics prompted a strong, unified resentment among the community members, culminating in the public act of protest.
The smearing of black ink is a traditional and highly symbolic method of public condemnation and shaming in Nepal, used by protestors to express ultimate rejection and dissatisfaction with the actions or authority of an individual or institution.
Bank’s Formal Response and Regulatory Notification
Jyoti Bikas Bank has acknowledged the incident and has issued a formal statement outlining its actions and position on the matter. The bank has indicated that it views the incident with serious concern, confirming that its employees were subjected to misconduct and, implicitly, physical indignity.
Reporting to Nepal Rastra Bank: The bank officially informed the country’s central bank and primary regulator, Nepal Rastra Bank (NRB), about the incident. Reporting to the NRB is a mandatory step, as the central bank has strict guidelines on the code of conduct for employees of financial institutions, as well as clear directives on asset quality and loan recovery procedures. The NRB will likely investigate both the actions of the bank staff and the nature of the protest itself.
Legal Action Preparation: Jyoti Bikas Bank stated that it has taken measures to identify those involved in the protest. The bank confirmed that it has collected the names of individuals involved in the act of smearing black ink and the alleged physical assault of the employees. These details have been formally forwarded to the concerned regulatory authorities with the clear intention of seeking necessary action against the protestors. This highlights a likely legal confrontation, pitting the community against the bank over the recovery process.
This incident has thrown a spotlight on the often-contentious relationship between financial institutions and borrowers in Nepal, particularly in the context of loan recovery from those facing financial hardship. It underscores the urgent need for financial institutions to adhere strictly to ethical and respectful debt collection practices, avoiding any actions that may infringe upon the dignity and social standing of borrowers and their families.
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