8,849 individuals and businesses blacklisted for banking fraud

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In the initial two months of the current fiscal year, a staggering total of 8,849 individuals and businesses faced blacklisting due to check bounce and defaulting on bank loans.

The Credit Information Bureau (CIB) Nepal reported a noticeable surge in blacklisting cases recently, averaging 147 individuals being blacklisted daily. Among these, 169 cases were associated with fraudulent activities involving microfinance companies, while the rest pertained to banks, financial institutions (BFIs), and cooperatives.

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The ongoing economic recession has placed both the general public and entrepreneurs in a challenging position, making it difficult for them to repay bank loans on schedule. Furthermore, traders have voiced concerns about the steep interest rates imposed by banks under these circumstances.

CIB Nepal officials attributed the rising blacklisting cases primarily to check bounce incidents, accounting for approximately 80-85 percent of the cases. BFIs typically recommend blacklisting individuals failing to settle their interest dues on loans for over 90 days. Currently, the bureau maintains a blacklist containing 64,235 individuals and businesses.

Kathmandu District Police Range reported a concerning trend, with 7,101 out of 13,464 filed cases in the fiscal year 2022-23 related to banking frauds, encompassing bounced checks, lottery scams, and deceptive promises of lucrative overseas employment opportunities. Banking offenses and related cases constituted more than half of the total reported crimes during this period, reflecting the severity of the issue.

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