At the sixth annual general meeting, Governor Poudel said that an investigation should be conducted into the paperwork process and the actual use of loans given to agriculture.
Nepal Rastra Bank Governor Bishwanath Poudel has said that an investigation should be conducted into how the loans disbursed by banks and financial institutions are utilized. He said that an investigation should be conducted to determine whether most of the loans have gone to the production and processing sectors or are being utilized through paper processes.
Speaking at the sixth annual general meeting of the Confederation of Banks and Financial Institutions, Governor Poudel said that a study should be conducted on whether the banking sector has given loans by playing with paper or has it been used for farming.
‘Has the loan given by banks to agriculture been used for agriculture or has that money been spent on going abroad,’ he said, ‘If SME loans are good, the country will be strong. However, that has not happened.’
He expressed concern over the increasing problem of blacklisting in Nepal in recent years. He said that most of the cheques have bounced and that there is no criminalization of cheque bounces. He said that such a law needs to be amended.
He also said that the Rastra Bank has started giving priority to policy-level work by abandoning micromanagement. He said that now the Rastra Bank should not be doing retail work like share transfer and legal arrangements should be made so that such work can be done by the company secretary.
