KATHMANDU, July 27: The number of individuals and entities being blacklisted by government authorities for financial crimes has been on the rise in recent years. In the last fiscal year (FY 2024/25) alone, a total of 53,571 individuals and institutions were blacklisted, according to the Credit Information Bureau (CIB). In the fiscal year 2023/24, the figure stood at 52,303. This marks an increase of 1,268 entries within a year, CIB spokesperson Bijay Kunwar said.
Of the total blacklisted, as many as 34,770 cases were due to bounced checks, while 18,801 were related to loan defaults. Though 53,571 were blacklisted in total, around 10,074 individuals and entities were later removed from the list, Kunwar said.
12,872 individuals accused of banking offense blacklisted in th...
The economic slowdown in recent years has led to a surge in blacklisting, with check bounces accounting for a significant majority. In many personal transactions, individuals issue checks without ensuring sufficient balance, which often results in blacklisting after the checks bounce. This trend has grown sharply in recent months. Experts say the weakening economy has affected financial dealings, directly contributing to the rise in check-related cases. Issuing checks from empty accounts with malicious intent has also been identified as another reason.
Banks and financial institutions blacklist customers who fail to repay loans on time or whose checks are dishonored. Statistics indicate a sharp increase in check bounce cases, especially in the construction sector. Due to the ongoing economic slump, businesses have faced payment difficulties, worsening the situation.
Check bounce cases are also common in personal financial dealings. The decline in income and the sluggish national economy have contributed to the growing number of such incidents. In some cases, checks are reportedly issued with the intent to defraud.
The monetary policy for the current fiscal year has proposed a relaxation in existing provisions that lead to blacklisting due to check bounces. While this isn't the first time the issue has been addressed, the central bank had already prepared a draft regulation on credit information reform, which includes this change. Although it has been eight months since the draft was published for public feedback, it has yet to be finalized.
