Kathmandu. Banks, financial institutions and microfinance institutions have complained of non-cooperation from the local level in the loan recovery process. Organizations related to these sectors have issued a joint statement complaining about this.

“When banks go through the auction process, the land revenue offices and others demand various documents such as panchised assessment, house recommendations. However, in recent times, banks, financial and microfinance institutions have not received support from the local level while going into the loan recovery process. the statement said.

It has been said that banks are finding it difficult to proceed with the loan recovery process easily within the ambit of the law due to the lack of recommendation from the house by the local level and unnecessary delay even if it has to be given. It has also affected the bank’s credit recovery, affecting the overall financial cycle and increasing the risk of problems in economic stability.

Incidents of threats, mental pressure and physical assault on financial sector employees have increased in some places during loan recovery, the statement said.

“Such an incident has not only disturbed the dignity of the entire banking sector but has also completely lowered the morale of the employees and on the other hand, a place has been created to question the rule of law,” the statement said. ’