Banks and financial institutions object to the banker's arrest

They objected to the arrest of the then Century Bank employee by the police on the charge of providing loans in excess of the mortgage valuation.

'Even those who are not directly involved in any incident of banks and financial institutions, just because they have signed official titles or documents, they should not be made complicit in the action by neglecting the work done with good intentions,' the joint statement said, 'The investigation process related to banking crimes should be heard first and The tendency to say that it should be closed has been promoted. This has seriously affected the mental and social condition of the bankers, the morale of the employees has decreased and it will also affect the expansion of loans and the development of the economy as a whole. Banks claim that this will affect them.

'Banks and financial institutions, apart from movable/immovable assets, look at projects, business, cash flow and other bases and provide loans under the instructions issued by Nepal Rastra Bank,' the statement said, 'transparently following the principles directed by the regulatory body and moving forward literally. We request the relevant authorities to ensure that employees working in the sensitive financial sector have a safe working environment.'

As the entire banking sector has become worried and panicked about the arrests and arrests taking place in an essential and sensitive area like banking, it has been requested in the statement that the concerned agencies of the state should be serious about this matter. "We urge all those concerned to be serious immediately as there may be a big challenge in this sector if the arrests based on the actions of the bank and financial sector employees, staying within the scope of the regulatory directives and working within their respective credit policies and procedures, are not stopped," the statement said.  ;

Banks and financial institutions have expressed their displeasure with the understanding of the police regarding the collateral of loans provided by banks and financial institutions. The meeting of the Bankers' Association held on Wednesday, which discussed the arrest of 11 employees including Tulsi Gautam, former executive officer of the then Century Commercial Bank, on the charge of lending more than the mortgage, came to this conclusion. Among those arrested, Manoj Neupane is currently Senior Deputy Chief Executive Officer of Prabhu Bank. Five of the 11 arrested are currently working in Prabhu Bank, while the rest retired only a few months ago.

According to the police, they were arrested regarding the details of the company related to the officer of the board of directors of the Deurali multi-purpose cooperative organization located in Lalitpur Satdobato and the collateral of the loan provided to that company by the then Century Bank. The owner of the said cooperative, Rabindra Choulagai, has already been arrested by the police and detained pending trial. He was arrested on the charge of not returning 3 billion rupees savings of common people in the cooperative. CIB spokesperson Hovindra Bogti informed that Rashtra Bank was questioned during the

investigation. "During the investigation, it was found that this bank provides loans on the basis of goodwill, we asked Nepal Rastra Bank whether it is possible to do that or not. In the letter sent by the National Bank on February 4, it says that loans cannot be given on the basis of goodwill,' said spokesperson Bogti, 'We had to approach the bank while investigating the fraud and bullying committed by Deurali Cooperative. Otherwise, the CIB does not have the right to investigate the bank's bad loans.'

In the past, Deurali Sahakari took loans from other banks and financial institutions, but recently, the then Century Bank swapped them, police said. The National Bank refused to speak on this matter. "We are not talking now because the relevant agencies are investigating," said the source. On Wednesday, the Bankers Association discussed the arrest of employees with Home Minister Narayankaji Shrestha, Central Investigation Bureau (CIB) of Police, Nepal Rastra Bank Governor Maha Prasad Adhikari and others.