More than 50 depositors of SFC visited the Nepal Rastra Bank (NRB) on Monday. The troubled financial institution, which is in the process of liquidation, has around 5,000 depositors.[break]
A highly placed NRB official told Republica on Monday that the concern of the depositors concern was mainly on recovery of the deposit and early liquidation of SFC. “They have asked the central bank to make environment conducive so that they can get their money back,” the official added.
Some of the depositors also complained that the SFC management was making payment of some accountholders having ties with the management team.
The NRB official, however, said the concern was unfounded.
After declaring the company ´troubled´ financial institution about a year ago, the central bank had decided to send SFC into liquidation in first week of February.
The official said the liquidation procedure was taking longer due to lack of transparency in account keeping.
“Since there is no transparency in dealings, there is no guarantee that the company´s total assets will be sufficient to pay the depositors,” he said, adding, “Nothing can be said on complete recovery of deposits now."
The SFC depositors have formed a committee to initiate talks with NRB officials to safeguard their deposit.
Meanwhile, board members of the SFC met NRB officials on Monday.
Their major concern was to save the company from liquidation, an NRB official told Republica.
Earlier, the board members had also requested the central bank to hand over the management of the SFC to a new team.
However, the official clarified that no new group has been invited to take over the management, hinting that liquidation process would begin anytime soon.
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