Nepal Rastra Bank to end blacklisting of cheque bounce

लगानी न्यूज

२५ असार २०८३, बिहीबार ०७:३४July 9, 2026

. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, has announced to make special policy provisions to reduce the cases of people being blacklisted and deprived of banking services due to cheque bounce.

Through the Monetary Policy for the coming fiscal year 2083/84, the Nepal Rastra Bank (NRB) has stated that it will systematize the unlimited liability created by personal guarantee and reduce the situation of exiting the financial system due to cheque bounce.TAG_OPEN_div_50

The Monetary Policy unveiled by the Nepal Rastra Bank (NRB) on Tuesday states, “Special policy provisions will be made to reduce the situation of blacklisting and obstruction in access to banking services due to disrespect of cheques.”TAG_OPEN_div_48 With this, the existing system of cheque bounce will be improved.

At a press conference organized after the announcement of the monetary policy, Executive Director and Spokesperson of the Nepal Rastra Bank, Guru Prasad Poudel, said that the existing practice of personal guarantee would be reviewed.TAG_OPEN_div_46 According to him, the practice of taking personal guarantee from promoters or directors while taking loans from banks has created unlimited liability on them.

He said, “If a company has taken a loan of Rs 50 crore from a bank, then there is a practice of taking personal guarantee from all the promoters or shareholders of that company.TAG_OPEN_div_44 This has created an unlimited liability on the businessman. The burden of the loan falls not on a single person but on the entire director. The burden of this falls on the businessmen. Necessary regulatory arrangements will be made to end this situation. ”

According to the Rastra Bank, such a provision has added unnecessary risk to the operation of the business.TAG_OPEN_div_42 Poudel said that an environment would be created for the entrepreneurs to return to economic activities by clarifying the scope of personal guarantee.

Similarly, the situation of difficulty in access to banking services, loans, guarantees, LC, opening of new accounts and other financial services after being blacklisted due to cheque dishonour will also be reconsidered,

TAG_CLOSE_div_40 Poudel said.TAG_OPEN_div_40

According to the current legal provision, if the cheque issued without sufficient balance in the account is not paid, then the process of banking offence can proceed against the concerned person. According to the Banking Offences and Punishment Act, action will be taken if the aggrieved party files a complaint after dishonour of cheques.

According to the Act, if convicted, the amount mentioned in the cheque and its interest will have to be paid, imprisonment up to three months or a fine of up to three thousand rupees or both.TAG_OPEN_div_36 Moreover, it has been difficult to get loans from banks and financial institutions, get guarantees and use other financial services in the future as the concerned people are kept in the blacklist of Credit Information Center.

Due to this provision, the number of people blacklisted has increased significantly in recent years. According to data from the Credit Information Center, there are more than 170,000 people currently on the blacklist. The largest proportion of those blacklisted are due to disrespect to cheques.

According to the annual report of the Centre, out of the total 129,974 people blacklisted till the end of the fiscal year 2081/82, about 74.8 per cent or more than 127,000 people were blacklisted due to cheque bounce.TAG_OPEN_div_32 The rest of the people have been listed for non-payment of loans, non-repayment of loans and non-fulfillment of other financial obligations.

While the existing cheque bounce system has helped to maintain financial discipline, a large number of people have been forced out of the banking system in the long term due to general business problems or temporary cash shortages.TAG_OPEN_div_30

The blacklisted people are facing difficulties in getting new loans, getting bank guarantees, opening LCs, completing some government processes and expanding their business.TAG_OPEN_div_28 The private sector has long been demanding a practical policy saying that cheque bounce cases should not be looked at from the same standard in all situations.

Monetary policy has addressed the demand of the private sector to some extent. However, the central bank has not decided to completely remove cheque bounce from the scope of banking offences or scrap the blacklist system. According to NRB Executive Director Poudel, policy arrangements will be made to distinguish between people who have temporary problems in real business transactions and those who deliberately commit fraud.