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'Rashtra Bank is strictly monitoring microfinance'
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Srijan Bastola of the Microfinance Institution Supervision Department of Nepal Rastra Bank said that as credit has expanded in microfinance, there has also been an increase in cases of misuse.
Speaking at the fourth session of Nirbhik Nari program organized in Biratnagar on Wednesday by Nari Masik, a co-publication of Kantipur Publications, "Small finance made entrepreneurs, non-payment of loans led to problems", he said that some organizations have become problematic due to weaknesses in the evaluations to be done while giving loans.
'Random lending increased indebtedness . Unhealthy competition also increased. Random loans expanded, but due to lack of monitoring, they turned into bad loans,' she said. In particular, this is an area that needs to be regulated. But in the name of increasing access to finance, the National Bank had to intervene after it expanded a lot.'
To solve the current problem, she also said that the National Bank is strictly monitoring to prevent loan investment without obtaining information from the credit information center.
