8,849 individuals and firms blacklisted during mid-July and mid-September on banking fraud

Published On: September 20, 2023 08:45 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Sept 20: A total of 8,849 individuals and firms were blacklisted in the first two months of the current fiscal year, on charge of check bounce and defaulting bank loans.

According to the Credit Information Bureau (CIB) Nepal, the cases of blacklisting have increased by a notable number in recent days. The records of the CIB Nepal show that an average of 147 individuals are being blacklisted on a daily basis.

Out of the total number, 169 individuals were blacklisted on fraudulent cases related to microfinance companies. The remaining cases were related to banks and financial institutions (BFIs) and cooperatives.

With the country reeling under recession, both the general people and entrepreneurs have been unable to repay bank loans on time. In addition, traders have been complaining about the exorbitant interest rates charged by banks for this situation.    

According to an official of the CIB Nepal, the increasing cases of blacklisting were associated with the check bounce along with defaulting of banks loans. “About 80-85 percent of the cases were related to the check bounce,” the source said.  

The BFIs recommend keeping individuals in blacklist if they fail to pay the interest dues on loans for more than 90 days. As of now, the bureau has kept 64,235 individuals and firms on the blacklist.  

According to the Kathmandu District Police Range, out of 13,464 cases of crime filed in the fiscal year 2022-23, a total of 7,101 cases were related to banking frauds including bounced bank checks, swindling through lottery scams, and deceptive promises of lucrative employment opportunities abroad. Cases of banking offense and similar cases account more than half of the total crimes reported in the review period.


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