Nabil Bank dupes customers flouting Central Bank’s directives

By Our Reporter
Nabil Bank Limited has been found to be engaged in an ‘illegal practice’ in recovering loans from its borrowers and thereby deceiving the customers.
The commercial bank has been flouting Nepal Rastra Bank rules and standards in recovering some loans, according to five borrowers who came in contact with Republica daily. According to news report, Nabil Bank has been deducting the balance from the accounts of some borrowers, which is in contravention of NRB directives.
Borrowers who fail to service their debts on time for whatever reason have found the bank deducting the balance from their accounts after taking the accounts offline from its Core Banking Software (CBS). After taking the accounts offline, the bank deducts from the accounts in a manner that is against existing loan recovery norms.
While NRB’s rules allow the bank to first debit the penal interest, then the interest and then only the principal amount, the bank is doing just the opposite. The borrowers claim that the bank first deducted the principal before debiting interest, and then only the penal interest.
Moreover, the Chaudhari Group holds dominating share in the Bank. Chaudhari Group is known as a business house manipulating tax.