Kathmandu. Nepal Rastra Bank (NRB) Governor Prof Dr Bishwanath Poudel has asked whether the banking sector has given loans to play paper games or allow farming. He said that the matter should be studied. He said that he should see whether the loan from the bank has gone for agriculture or the money has been spent to go abroad.

He said that if SME loans are good, then the country will be strong. However, he said that did not happen. Speaking at the annual general meeting of the Confederation of Banks and Financial Institutions (CBFIN) here today, Governor Poudel said that the microfinance management should understand the thinking of the loan manager. He said that the problem of black list has increased in Nepal.

He said that most of the cheques have bounced and there should not be criminalization as soon as the cheques are bounced. He said that such a law needs to be amended. Poudel said that it is time to see how the branch of the bank is functioning. He said that this provision is in the monetary policy and he wants the bank branch to run on profit.

Governor Poudel said that Nepal Rastra Bank will work on this issue. He said that the central bank is looking at the performance of the banks. He said that the Rastra Bank should not be involved in retail work like share transfer and such work should be done by the company secretary.

He said that now there is a desire to invest in Nepal. He said that the decline in investment should not be seen only as the Genji movement. He, however, claimed that the agitation has made the situation a bit uncomfortable.