The number of people and companies blacklisted in Nepal has surged in the last fiscal year, with cheque bounce cases leading the list of loan-related issues. According to the Credit Information Bureau (CIB), a total of 42,303 individuals and institutions were blacklisted for various financial misconducts.
Among them, 12,821 people or companies were blacklisted for not repaying loans or misusing loan facilities. Additionally, 29,482 were blacklisted due to bounced cheques, making it the most common reason for blacklisting, said CIB spokesperson Vijay Kunwar.
Big names like Arghakhanchi Cement and Hyundai have also appeared in recent discussions regarding blacklisting, although detailed reasons were not disclosed.
Who gets blacklisted?
People or institutions are placed on the blacklist under several conditions:
- If loan repayments (principal or interest) are overdue by more than one year.
- If the borrower misuses the loan or violates loan terms.
- If the bank has filed a case against the borrower in court.
- If the borrower disappears or fails to contact the lender for over 90 days.
- If the borrower declares bankruptcy or defaults entirely.
Issuing a cheque without sufficient funds, or closing the account after issuing the cheque, can result in blacklisting. Even cheques with incorrect or forged signatures that go unpaid after notice can lead to blacklisting. This category alone accounts for more than 29,000 cases in the past year.
However, blacklisted individuals can regain their passport and banking access if they restructure or settle their loans in a manner acceptable to the bank or financial institution.
Blacklisted cases:
- Commercial banks and financial institutions: 38,825 cases
- Microfinance institutions: 5,520 cases
