Nepal Rastra Bank Urges Action Against Rising Attacks on Financial Institutions

Nepal Rastra Bank (NRB), the country’s central bank, has expressed “serious concern” over the increasing frequency of organized attacks and unprofessional behavior targeting banks and financial institutions (BFIs) and their employees.

The statement follows a recent incident in Bardibas where staff members of Jyoti Bikash Bank were reportedly mistreated, sparking widespread protest from various banking associations. The central bank emphasized that while BFIs have successfully expanded to all local levels to provide essential services—such as deposits, loans, remittances, and social security payments—the recent surge in hostility threatens the stability of the entire financial sector.

NRB reminded the public that banks operate using deposits from common citizens. If loans are not repaid regularly, banks face liquidity issues and cannot return deposits to savers. The central bank urged customers who feel unfairly treated to use official channels. “There are established grievance handling mechanisms within both the respective institutions and the central bank to address customer concerns,” the statement read.

NRB warned that individuals involved in “irresponsible and unruly activities” against financial institutions and their staff will face legal action under prevailing laws. The central bank has requested all financial sector employees to continue their duties with high morale, assuring them of efforts to maintain a safe working environment.

Acknowledging that some borrowers may face genuine financial difficulties due to adverse economic conditions, the NRB noted that it has already introduced policies for loan restructuring and rescheduling to facilitate repayment.

“Unprofessional activities and attacks against financial institutions must be controlled to ensure the smooth mobilization of financial resources. Any disruption in this sector will ultimately hurt the general public.” – Nepal Rastra Bank Statement