Warning of action against intermediaries in loans
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Governor of Nepal Rastra Bank Dr. Vishwanath Poudel has said that a lot of work is being done to boost the economy of Madhesh. He said that due to the work being done in the infrastructure sector, the economy of Madhesh will boom.
"Many plans are under construction to make the economy of Madhesh viable," Governor Paudel said in a discussion program organized by Nepal Rastra Bank Janakpur on Monday, "every possible effort is being made to eliminate the problems seen in the economic sector." He claimed that the economy of Madhesh will be boosted with the completion of the first- Kanchanpur-Pathalaiya four-lane highway, the second-Kathmandu-Nijgarh expressway, the third-Mirchaiya-Ghurmi-Lukla road and the fourth-Hulaki highway.
'After the construction of Mirchaiya-Ghurmi-Lukla road, Janakpur will be like Pokhara,' Garbanar Paudel said, 'Internal and external tourists stay in Janakpur and reach Lukla. This will help both religious and mountain tourism in Nepal. The participants of the discussion complained that middlemen are used when taking loans from banks and financial institutions in Madhesh province.
Governor Paudel warned that it would not be good to find out that middlemen are used in any work of lending or banking and financial sector. "Have zero tolerance for the use of middlemen," he said, "If I find out, it will not be good." I will get the police to catch them.' He suggested to have a focal person who understands the local language in the banks and financial institutions of Madhesh and to start a financial literacy program. In the
discussion, Dipendra Mahaseth, Vice President of Madhesh Province of the Federation of Nepal Chamber of Commerce and Industry, accused the banks of not paying attention to the loans of 2-4 lakh rupees required by the farmers, which led to the creation of middlemen and meter business. President of Janakpurdham Chamber of Commerce and Industry, Surendra Bhandari, said that the relationship between the banking sector and the middleman is causing problems for the borrowers.
Management of various banks said that the demand for loans in the fields of agriculture, hotels, trading, auto etc. is high in Madhesh province. They also said that there is a problem in Madhesh province in collecting principal and interest after the covid epidemic and after the law to curb meter usage.
