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With large businesses to small businesses, as well as individuals, struggling to pay their dues and fulfill financial obligations on time due to the ongoing economic crisis, there has been a dramatic surge in the number of blacklisted individuals and firms.  

The number of individuals and firms blacklisted by the Credit Information Bureau (CIB) at the request of banks and financial institutions surged by 142.38 percent in the last fiscal year 2022/23.

According to the bureau, a total of 30,109 individuals and firms were blacklisted in FY 2022/23. In the previous fiscal year 2021/22, a total of 12,422 firms and individuals were blacklisted.

The CIB blacklists the individuals and firms defaulting on loans and those failing to issue non-funded or underfunded checks at the request of the banks and financial institutions (BFIs) concerned.

Such is the surge in the blacklisting that the number of blacklisted individuals and firms in the last year has surpassed the total number of blacklisted till FY 2021/22. Till FY 2021/22, around 27,000 individuals and firms were blacklisted by the CIB. However, in the last one year (FY 2022/23), 30,109 individuals and firms were blacklisted.

Experts and bankers attribute the rise in blacklisting to the current economic crisis. There has been an interruption in the flow of money in the market due to a prolonged liquidity crunch as well as the slowdown in aggregate demand. In addition, banks and financial institutions’ higher interest rates have also hit small businesses hard. 

Companies and individuals issue checks of a certain date to settle their business and personal transactions. However, due to the recent downturn in business, the ability of companies and individuals to pay their creditors has weakened. People often issue bad checks to their creditors to avoid a difficult situation.

Since last fiscal year, the CIB has also introduced a policy of blacklisting people defaulting on loan payments to microfinance institutions. Of the total blacklisted individuals and firms, 721 are customers of microfinance institutions while the remaining 29,388 have been blacklisted on the recommendation of commercial banks, development banks, and finance companies. The total number of blacklisted individuals and firms has reached 56,384 by the end of FY 2022/23.

Banks and financial institutions recommend individuals and firms that fail to repay loans for six months for blacklisting to the CIB. 

The majority of blacklisting that has happened in the last fiscal year is related to check bounces. CIB Spokesperson Bijay Kunwar said that there were more cases of check bounces in the last fiscal year. 

The statistics of Nepal Police also tell that cheque bounces cases are on the rise. According to the data obtained from Nepal Police, 6,483 cases of banking offenses with the amount equal to Rs 8.57bn have been registered till mid-March 2023.

The data show there have already been more banking fraud cases registered in the first eight months of FY 2022/23 than in FY 2021/22. According to Nepal Police, a total of 5,416 cases of banking fraud were registered in the last fiscal year. 

The majority of banking offense cases are related to cheque bounces. In this fiscal also, 99 percent of banking offense cases are of bad cheques. 

Of the total 6,483 banking fraud cases, 6,422 were related to bad checks. As per the Banking Offense and Punishment Act, 2008, the non-payment of a written cheque three times due to the account holder’s failure to maintain the amount mentioned on the check is counted as a banking offense.

Number of blacklisted individuals and firms 

FY Number

2020/21 4,474

2021/22 12,422

2022/23 30,109

People have been compelled to live in the darkness for the past two weeks due to disruption of power supply in Mugu district.

Twenty-six thousand members of 5,000 households, government offices and other organizations of Chhayanath Rara municipality in the district have been affected due to disruption of power supply after the flood damaged Gamgadh Micro Hydropower Project on July 12.

A total of 87 settlements in Gamgadhi, the district headquarters of Mugu, as well as its surrounding areas are living in darkness. The locals are hugely affected due to power disrupting for a long time.

Problems have surfaced in service delivery of government offices as well as banks and financial institutions due to the same, said Assistant Manager of Rastriya Banijya Bank, Mugu, Prakash Bham.

Although efforts were made time and again to remove silts and mud, brought by the flood, from the intake of the powerhouse of the project, went in vain, said a technician of the project, Tshering Lama.

The price of gold has dropped by Rs 500 per tola in the domestic market on Sunday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow bullion is being traded at Rs 112, 300 per tola today. It was traded at Rs 112, 800 per tola on Friday.

Meanwhile, tejabi gold is being traded at Rs 111, 750 per tola. It was traded at Rs 112, 250 per tola.

Similarly, the silver is being traded at Rs 1,465 per tola today.

A high-level team of the Communist Party of China (CPC) is visiting Nepal on Sunday at the invitation of the ruling party CPN (Maoist Center).

The team led by Yuan Jiajun, who is also a politburo member and party secretary of Chongqing city, is arriving today.

The Yuan team is coming to Nepal via Singapore and Sri Lanka.

While in Nepal, the Yuan’s team will hold meetings with top leaders of major political parties and visit historical sites.

A Central Committee meeting of the CPC had made a decision to send the Yuan’s team to three countries from July 16 to 25.

Five officials of the Foreign Ministry of China arrived in Kathmandu on the Air China flight.

Earlier, a team of Maoist leaders led by former speaker and Maoist leader Agni Prasad Sapkota visited China at the invitation of CPC.

After that, a team of lawmakers led by National Assembly Chairman Ganesh Prasad Timilsina also visited China.

The CPC leaders’ visit to Nepal at a time when preparations are being made for Prime Minister Pushpa Kamal Dahal’s visit to China has been seen as meaningful.

Though Prime Minister Dahal is scheduled to visit China in September, the official date has not been fixed yet.

Prime Minister Dahal has already directed foreign minister and finance minister to fix the agenda for the visit.

Meanwhile, the Foreign Ministry and the Chinese Embassy in Nepal are also making necessary preparations for Prime Minister Dahal’s visit, according to a source.

During PM Dahal’s visit, China is preparing to hold a discussion on the draft of the BRI project implementation.

Minister for Economic Affairs and Planning of Karnali Province government Bedraj Singh has directed the office chiefs of Jumla district for budget implementation.

Minister Singh, who reached Jumla on Saturday in the course of monitoring of different projects including bridge, building and health infrastructures, urged them to achieve targets determined by Karnali Province government in implementation of the budget of current fiscal year 2080/81.

He said that the provincial government was committed to address the problems put forth by the office chiefs.

Sharing the information about the activities to be carried out by provincial offices located in Jumla district, Minister Singh added, "Budget of Karnali Province government has already been passed. The province government would get budget authority immediately. Office chiefs should come to office regularly and should be committed to complete works of assigned projects as well as to sign contracts for any project within November."

He also suggested the office chiefs and staffers not to compromise in service delivery to the people and maintain good governance.

Similarly, Chief District Officer of Jumla, Jay Kumar Ghimire, said he would intensify his role towards facilitating the works of office chiefs, their regularity as well as maintain peace and security and good governance in the district.

Minister Singh inspected Karnali Academy of Health Sciences, Karnali Technical School, building of Federation of Nepali Journalists, under construction bridge at Patarasi Rural Municipality-5 in Jumla.

Police have arrested 10 persons for their alleged involvement in torching houses at Guthichour Rural Municipality and Chandannath Municipality of Jumla district on Sunday.

According to the Information Officer at the District Police Office, Jumla, Dharma Raj Joshi, 10 persons have been arrested suspecting their involvement in the incident. 

However, police have not revealed the identity of the arrested persons.

An unidentified group had torched six houses at Guthichour, one house at Chandannath Municipality and a parked tractor at 2:00 am on Saturday.

Chairperson of Guthichour Rural Municipality, Dan Bahadur Budha, said total seven houses-- two houses at Dhawalpur Village, one house at Bauli Village, one at Dhudakhoj Village, one at Mathillo Deharbijur Village and two at Khalla ward were set on fire.

A 28-year-old man was shot dead in Tarahara Jungle of Sunsari along the Dharan-Tarahara road section on Friday.

It has been learnt that Rohit Chaudhary of Biratnagar Sub-Metropolitan City-5, who was heading towards Biratnagar from Dhankuta, was shot and robbed by a gang of unidentified persons at the Charkoshe Jungle of Tarahara.

Incapacitated in the attack, Chaudhary breathed his last during the course of treatment at the Dharan-based BP Koirala Institute of Health Sciences.

DSP Raj Kumar Rai, spokesperson at the District Police Office, Sunsari, said that they are searching for the miscreants.

The National Youth Federation Nepal, youth wing of the main opposition CPN-UML, took out a torch rally in the Capital on Friday demanding stern action against those involved in the gold smuggling.

During the torch rally organized in New Baneshwor, the youth leaders demanded resignation of Home Minister Narayan Kaji Shrestha.

Saying that the gold is being smuggled from the Tribhuvan International Airport (TIA), they chanted slogans against Home Minister Shrestha demanding his resignation on moral grounds.