Blacklisting Process in Nepal: Legal Provisions, CIB Role, and Penalties
The blacklisting process in Nepal plays a crucial role in maintaining financial discipline, accountability, and transparency in the banking sector. Regulated by the Nepal Rastra Bank (NRB) and implemented by the Credit Information Bureau (CIB), this system identifies individuals and businesses who default on loans, issue dishonored cheques, or engage in fraudulent financial activities. Once blacklisted, parties face severe restrictions—limited access to loans, barred participation in government tenders, and loss of financial credibility. Guided by the Unified Directives of NRB, the Banking Offense and Punishment Act, 2064, and CIB Regulations, this legal framework safeguards Nepal’s banking institutions against financial risks. The system encourages responsible borrowing while protecting banks from bad debts and unethical practices. The article provides a comprehensive guide to the blacklisting grounds, process, penalties, and the significant role of NRB and CIB in stabilizing Nepal’s financial system.