NRB Blacklisted Property Auction Notice Issued Nationwide

12th January 2026, Kathmandu

Nepal Rastra Bank (NRB) has officially published a nationwide public notice regarding the auction sale of pledged and mortgaged properties belonging to blacklisted borrowers. This decisive move aims to stabilize the banking sector by aggressively recovering non-performing loans (NPLs) that have remained unsettled for extended periods. The notice, issued in accordance with the Bank and Financial Institutions Act (BAFIA) 2073 and the Nepal Rastra Bank Act 2058, follows prolonged defaults where borrowers failed to clear outstanding liabilities despite multiple warnings and opportunities for restructuring.

NRB Blacklisted Property Auction

This NRB blacklisted property auction notice provides comprehensive data regarding the delinquent accounts, including the identities of the borrowers, the nature of the mortgaged assets, and the minimum valuation required for participation. Interested bidders are mandated to strictly adhere to the procedural and legal conditions outlined by the central bank to ensure a transparent and fair asset recovery process.

Legal Basis of the Auction and Regulatory Framework

The auction process is initiated under the regulatory authority of Nepal Rastra Bank following a borrower’s classification as a willful or situational defaulter. According to the updated Unified Directive issued in late 2025, banks and financial institutions (BFIs) are now permitted to acquire collateral as non-banking assets (NBA) only after attempting to sell it through at least three separate public auctions. This specific notice represents one such attempt to dispose of these assets to the private sector before they are booked permanently onto the balance sheets of the respective banks.

The legal framework ensures that the recovery process is not only about debt collection but also about maintaining the flow of capital within the economy. When a borrower is blacklisted by the Credit Information Bureau (CIB) for defaults exceeding ninety days or involving fraud, the central bank intervenes to protect the interests of depositors. The notice confirms that all proceedings follow recovery guidelines that prioritize public auctions as the primary method of debt settlement.

Details of Borrowers and Mortgaged Properties

The public notice contains an extensive list of assets and individuals currently under the recovery process. This data is essential for transparency and allows prospective buyers to conduct their own due diligence. The specific details covered in the nationwide notice include:

Names and permanent addresses of the blacklisted borrowers and their legal guarantors.

Citizenship or firm registration numbers for formal identification.

The specific bank or financial institution where the loan was originally originated.

A thorough description of the pledged properties, ranging from residential houses and commercial buildings to agricultural land and machinery.

Precise property locations, including district, municipality, ward number, and plot (Kitta) numbers.

The current ownership status as verified by the local Land Revenue Office (Malpot).

These properties are located in diverse geographic regions across Nepal, offering a wide range of investment opportunities in both metropolitan hubs like Kathmandu and Pokhara as well as developing rural areas.

Minimum Bid Amount and Auction Conditions

For every property listed, a minimum bid value has been established based on the most recent valuation reports from authorized third-party valuators. In the Nepali banking context, property valuation is typically calculated by considering thirty percent of the government-set value and seventy percent of the prevailing market value.

Interested participants must submit bids that are equal to or higher than the specified floor price. To ensure the seriousness of the participants, the notice mandates the following conditions:

Bid Security: Bidders must deposit a security amount, often ten percent of their total bid value, into the designated bank account of Nepal Rastra Bank or the respective financial institution.

Documentation: Submissions must include a valid citizenship copy, a tax clearance certificate, and a formal declaration of compliance with the auction terms.

Disqualification: Any bid that fails to meet the minimum price or lacks the necessary financial deposit will be automatically disqualified.

Application Timeline and Participation Process

Prospective buyers must follow a strict timeline to participate in the auction. According to the NRB blacklisted property auction notice, all applications must be submitted within thirty-five days from the date of the first publication. The process involves:

Obtaining the Bid Form: Interested parties can acquire the official bid documents from the designated office mentioned in the notice, usually the Assets and Service Management Department of NRB or the head office of the concerned bank.

Property Inspection: Bidders are encouraged to visit the sites independently as properties are auctioned on an “as-is-where-is” basis, meaning the buyer accepts the physical and legal state of the asset at the time of purchase.

Sealed Bid Submission: The bid must be submitted in a sealed envelope, clearly marked with the property details and the bidder’s information.

Public Opening: Bids are typically opened in the presence of bidders or their representatives at a pre-announced time to ensure maximum transparency.

Rights and Responsibilities of the Buyer

Once a bid is accepted, the successful bidder is responsible for completing the financial transaction within the timeframe specified in the letter of intent. This includes paying the remaining ninety percent of the bid amount. Furthermore, the buyer is responsible for all associated costs, such as:

Registration Fees: Taxes and fees required by the Land Revenue Office for the transfer of ownership (Lalpurja).

Capital Gains Tax: Any applicable taxes arising from the transaction as per the current fiscal laws of Nepal.

Property Maintenance: Any outstanding local government taxes or utility dues associated with the property.

Nepal Rastra Bank reserves the ultimate right to accept or reject any bid without providing a justification, ensuring that the recovery process serves the broader public interest and institutional stability.

Impact on Credit Discipline and the Financial Sector

This nationwide auction notice serves as a powerful instrument for enforcing credit discipline. By publicly identifying blacklisted individuals and auctioning their assets, the central bank sends a clear message regarding the consequences of willful default. The primary objectives of this measure are to:

Improve Liquidity: Converting non-performing assets back into cash allows banks to resume lending to productive sectors.

Deterrence: Public auctions discourage future borrowers from taking loans without a clear repayment plan.

Protection: It ensures that the savings of the general public, held within the banking system, are not compromised by the failure of a few large borrowers.

Recent updates to the NRB directives also provide a path for rehabilitation. If a borrower settles their dues in full through the auction or other means, they can be removed from the blacklist, allowing them to re-enter the financial system and open new bank accounts for personal use.

Conclusion

The NRB blacklisted property auction notice is a significant event in the Nepali financial calendar for 2026. It represents the central bank’s commitment to transparency and the rule of law within the banking sector. With a thirty-five-day window for participation, this auction offers a unique opportunity for investors to acquire valuable real estate and commercial assets while contributing to the overall health of the national economy. Interested parties should move quickly to complete their due diligence and prepare their bids within the stipulated timeline.

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