Kathmandu: With growing concern that recent incidents and developments linked to banking activities could undermine stability in the financial sector, Nepal Rastra Bank (NRB) Governor Dr. Bishwanath Paudel has held high-level discussions with Nepal Police and senior banking representatives.
On Friday morning, Governor Paudel met with Inspector General of Police (IGP) Dan Bahadur Karki and umbrella organizations representing chief executive officers of banks and financial institutions to address issues related to the security of banks, bankers and the overall financial system.
According to NRB spokesperson Guru Prasad Paudel, the meeting was convened amid rising risks of financial instability triggered by developments in lending, banking operations, and transactions of banks and financial institutions, as well as media coverage of recent incidents. He said the presence of both law enforcement and bankers reflected the seriousness of the concerns surrounding the resilience of the financial system.
Spokesperson Paudel explained that factors threatening deposits, lending, and the broader financial system have recently been raised in increasingly strong and vocal ways. The discussion, he said, reached a common understanding that NRB, banking associations, and police organizations must move forward in close coordination to manage such risks.
He added that when incidents occur at banks or financial institutions, timely information must reach the central bank, and coordinated action involving the police and other relevant agencies can help prevent escalation and ensure accountability for those responsible.
Given that elections are approaching and the current environment is considered sensitive, the meeting also emphasized the need for restraint. Banks have been advised to instruct their employees to act cautiously and avoid exaggerating incidents. In particular, discussions focused on the conduct of bank staff during loan recovery processes, stressing that recovery efforts should proceed only after completing all legal procedures and with appropriate restraint. Bankers participating in the meeting reportedly responded positively to these recommendations.
The discussion also addressed loan recovery and collateral auctions, with an emphasis on adopting a more coordinated approach. Participants agreed that banks should strictly follow legal processes and, where necessary, coordinate with the police while moving forward. Such coordination, it was noted, is expected to make recovery processes smoother and reduce the risk of conflict.
In light of the transitional period ahead of elections, banks and financial institutions have been directed to ensure that security measures at their offices, including CCTV systems and related equipment, are properly updated and maintained. Banks have also been instructed to regularly report the overall security situation to NRB.
Referring to incidents such as the recent case involving SBI Bank and the emergence of open threats against bankers and bank employees, including those circulated on YouTube, spokesperson Paudel said the meeting discussed how to share information and jointly respond to such threats. He noted that the police confirmed they are well informed, closely monitoring the situation, and keeping developments under active surveillance.
Paudel further stated that Nepal Police committed to taking action as required in response to such incidents. Banks raised concerns about threats being made against employees through various channels, as well as instances where they felt a lack of cooperation from local administrations or police offices. In response, Nepal Police expressed readiness to move forward through improved coordination.
One banker who participated in the meeting said there was agreement to strengthen coordination with the police to reduce attacks and mistreatment directed at bank employees.
The discussion was attended by representatives of the Nepal Bankers’ Association, the Development Bankers’ Association, senior officials of Nepal Police including the IGP, as well as Governor Dr. Bishwanath Paudel, deputy governors, executive directors from the regulation and supervision departments of NRB and spokesperson Guru Prasad Paudel.
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