NRB cautions public against possible cheating by hyper funds and network marketing

Published On: January 24, 2022 07:15 AM NPT By: Republica | @RepublicaNepal

KATHMANDU, Jan 24: Nepal Rastra Bank (NRB) has cautioned the people against carrying out network marketing and making investments in ‘hyper funds’ saying there is a risk of being swindled out of one’s money and capital flight from the country through such transactions.

Issuing a public notice on Sunday, the central bank cautioned the individuals and organizations concerned against investing in ‘hyper funds,’ which are related to virtual currencies and cryptocurrencies.

A hyper fund, popularly known as hyper verse in its revised version, is a mobile app based investment system. Under this, an investor needs to pay about US $ 300 to create a convertible account to get the membership of the community. While the investors are assured to receive returns of up to 180 percent of the invested amount, they are also lured to get more incentives if they make more people as members of the community.

Likewise, NRB has also expressed its concern over growing network marketing that functions on the basis of a pyramid system to create a large number of memberships. According to the central bank, currently a number of swindlers have been found luring many innocent people into network marketing like Jocial, Crowd I and Solemax Global, among others.

Earlier, network marketing companies landed in controversies after many of them were found cheating their customers, swindling them out of billions of rupees. Unity Life International, Herbo International, Gold Quest International, Crystal Vision International, Best World Business Link and Robious International, among others, had caused people to suffer in the name of networking business a decade ago. Unity Life International alone duped around Rs 4 billion.

Time and again, people have been found complaining for falling in trap by the network marketing companies. Last year too, the parliamentary Industry, Commerce, Labor and Consumer Welfare committee, after receiving over two dozen complaints, directed the government authorities to conduct strict surveillance of these companies. However, such companies have been expanding businesses due to weak monitoring by the regulators.