18th June 2025, Kathmandu
Nepal Rastra Bank Governor Dr. Biswo Nath Poudel has issued a firm warning. He said any bank caught cheating customers will face immediate action. The announcement came during a meeting with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and bank officials in Janakpurdham on Monday.
NRB Governor Warns Banks Fraud
Strict Action Against Unfair Bank Practices
Governor Poudel made it clear that banks causing trouble for customers will not be tolerated. He pointed out that banks often create problems through complicated procedures or false excuses. Such behavior will lead to strict penalties. This move aims to protect customers from exploitation.
Concerns Raised By Local Merchants
Merchants from Dhanusha raised serious concerns. They said banks auction collateral unfairly by making borrowers face difficult situations. Small traders and farmers struggle even to get small loans. They often feel ignored or mistreated by banks. Governor Poudel listened carefully and responded strongly to these complaints.
Respect And Support For All Customers
Governor Poudel instructed banks to treat every customer with respect. He emphasized the need to serve customers properly without causing trouble. Especially, farmers and illiterate clients in rural areas need special attention. To help them, banks should provide interpreter services or bilingual support. This will ensure clearer communication and better service.
Positive Attitude Towards Loan Applicants
Banks must adopt a positive and helpful attitude toward every customer who applies for loans. Governor Poudel stressed that banks should not turn away applicants or make the process difficult. This applies even to small loan requests. A cooperative approach can help expand financial inclusion across the country.
Ongoing Challenges In Rural Loan Access
During the discussion, participants praised government steps to reduce high loan interest rates. However, they noted that many rural residents still face problems. They find it hard to get loans for social events like weddings and feasts. Governor Poudel acknowledged this issue and said more policies are needed. The government must continue working to ease access to credit in rural areas.
Rising Loan Defaults In Madhesh Province
Bank representatives highlighted a growing problem of loan defaults in Madhesh Province. They reported that while many apply for loans, more borrowers are failing to repay on time. This trend worries banks and could affect financial stability. Governor Poudel urged banks to manage risks carefully while supporting customers.
Building Trust In Nepal’s Banking Sector
Governor Poudel’s warnings show a strong commitment to protecting customers. His call for fair treatment, clear communication, and better service aims to build trust in the banking system. Nepal Rastra Bank plans to monitor banks closely to ensure compliance. This will help create a safer and more reliable banking environment.
Summary
In summary, Nepal Rastra Bank’s Governor Dr. Biwo Nath Poudel has taken a firm stand against banks that mistreat customers. He warned of immediate penalties for those involved in fraud or unfair practices.
The concerns of small traders, farmers, and rural customers were given special attention. Banks are urged to treat all clients with respect and support, especially vulnerable groups. Challenges in loan access and rising defaults also need urgent solutions. Overall, this initiative aims to strengthen Nepal’s financial system and protect its people.
For more:- NRB Governor Warns Banks Fraud