NRB urges banks not to blacklist entrepreneurs

Kathmandu, Nov. 1

Governor of the Nepal Rastra Bank Maha Prasad Adhikari has urged the banks and financial institutions (BFIs) to not blacklist the debtors and auction their collateral at a time when their enterprises are slowed or weakened by the COVID-19 pandemic.

"The central bank has directed the BFIs no to blacklist the debtors and sell their collaterals. Please implement that directive," he said in an interaction on the implementation of the Monetary Policy 2020/21 and current economic situation, organised by the NRB's Research Department and BFIs Regulation Department on Sunday.

The interaction was organised online and participated in by entrepreneurs, traders and other representatives from 66 districts across the country.

The governor also said that the BFIs should behave as per the status of the clients while accepting the payment of the capital and interest of the loan. Ask for the repayment from the businesses and entrepreneurs that are earning money and don't ask those suffering in the pandemic and losing their money, he said.

According to him, the central bank was ready to address the problems faced by the BFIs due to the coronavirus pandemic.

The NRB aims at expanding the refinancing facility to all 753 local bodies and has urged to register complaint at the Grievance Handling Unit if any BFI denies extending the facility as per the central bank's policy.

Through the monetary policy, the central bank has announced Rs. 200 billion refinancing provision and facility for up to 20 per cent additional loan to the entrepreneurs.

"Please reach the nearest BFI and obtain the policy concession announced by the NRB; if you don't get the facility, it would be useless. We had designed the facility to rehabilitate the businesses affected by the pandemic," said Adhikari.

Secretary at the Ministry of Finance and member of the NRB Board of Directors Shishir Kumar Dhungana emphasised on the cooperation among the government, NRB, BFIs and private sector for business rehabilitation. He also said that the government had announced various relief measures and facilities for the entrepreneurs and enterprises in the budget of the current fiscal year 2020/21.

Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industries Shekhar Golchha said that the NRB's policy had saved the economy from serious accident.

Entrepreneurs said that the BFIs had exhibited indifference about implementing the refinancing facility. It is difficult to obtain refinancing, concessional loan, discount on interest and reduction in interest rate, they said.

According to them, the BFIs had become more profit oriented at the cost of service. However, the BFIs expressed their commitment to stick to the NRB policies and implement them.

President of the Nepal Bankers Association Bhuwan Kumar Dahal said that the banks were ready to move ahead hand in hand with the entrepreneurs.

Published in The Rising Nepal daily on 2 November 2020.