Nepal Rastra Bank published a supervisory notice addressing the link it sees between stress in banks and financial institutions and broader deterioration in the sector, and urging borrowers to repay loans regularly. It also reiterated that banks and financial institutions should extend credit within the scope of the Banks and Financial Institutions Act 2017 and Nepal Rastra Bank directives, including monitoring financed projects and recovering loans. The notice underlined that non-repayment can prevent deposits being returned and can affect liquidity, while noting that Nepal Rastra Bank has periodically facilitated measures such as loan restructuring and rescheduling to address repayment difficulties caused by adverse circumstances. It also pointed to complaint-handling mechanisms at both the relevant institution and Nepal Rastra Bank for customers who believe they have been cheated, warned against unprofessional and unethical activities by institutions and their staff that could disrupt financial services, and said those acting irresponsibly with banks and their employees or engaging in unethical activities are subject to action under prevailing law.
Central Bank of Nepal 2025-12-16
Nepal Rastra Bank issues supervisory notice urging regular loan repayment and warning of action over unethical banking conduct
Nepal Rastra Bank issued a notice linking stress in banks to sector deterioration, urging regular loan repayments. It emphasized adherence to the Banks and Financial Institutions Act 2017 and Nepal Rastra Bank directives, including project monitoring and loan recovery. It highlighted measures like loan restructuring and warned against unethical activities by institutions and staff, with potential legal actions for misconduct.