Kathmandu. Nepal Rastra Bank (NRB) is going to launch a special program for the protection of rural borrowers.
Nepal Rastra Bank (NRB) In the monetary policy announced for 83, it has been announced to run the “Nepal Rastra Bank with Borrowers” program with the objective of being in constant dialogue with the borrowers in the rural areas.
This program of the Rastra Bank is expected to help protect the interests of financial consumers in rural areas who are deprived of the services of banks and financial institutions due to low financial literacy.
According to Nepal Rastra Bank data, although the financial literacy rate in Nepal is above 60 percent, the number of borrowers being cheated by banks and financial institutions has increased. This is especially due to the non-business attitude of microfinance institutions.
Two years ago, there was a long-standing movement of microfinance victims in Kathmandu against the high interest charged by microfinance financial institutions. Apart from this, the victims who were made homeless by charging more interest than the principal of the loan on meter interest in the villages also had to launch a countrywide movement.
With the launch of rural sector-centric programmes by the Rastra Bank, consumers in rural areas will be able to raise their voice for their rights by being literate and aware on the financial side. On the other hand, customers who are aware of the loan transaction, process, mortgage valuation, mortgage auction process of the bank financial institution can be aware in time by knowing that they are being cheated.
Rastra Bank will issue “Financial Customer Protection Guidance” and directives on financial market conduct to protect financial customers.
