Kathmandu, Nov 1: Even after the government extended the duration for putting defaulters on the financial blacklist, the number of people and companies landing there has surged. Around 80 per cent of entries are due to bounced checks, according to the Credit Information Centre (CIC), showing that easing procedures hasn’t curbed the problem.

Under the amended Banking Offense and Punishment Act, account holders cannot issue a check without sufficient funds. Banks, financial institutions, or cooperatives must notify the issuer within 45 days if the check cannot be honored. If the payment isn’t made in that period, the check is considered dishonored, giving the holder the right to lodge a complaint. Yet the issuer can still settle the check anytime. Complaints must reach authorities within a year of the dishonor, and courts are expected to take up the case within six months.

Previously, bounced checks could be re-presented up to three times, often escalating the number of complaints and blacklist entries. Even after the government and Nepal Rastra Bank simplified procedures, the CIC’s data shows no decline.

As of 13 Kartik ( October 30 2025), 13,674 individuals and companies are on the blacklist, with 6,436 added since Baisakh 2082. By contrast, only 7,238 were listed by Baisakh 2 last year. The surge is attributed to the pandemic, economic slowdown, and issues in microfinance and cooperatives.

Nepal Police reports show most complaints they receive are banking offenses, predominantly bounced checks. Many prefer filing complaints at police stations rather than going directly to court because cases filed through the police are often resolved faster, with the defaulter immediately blacklisted.

The central bank has adjusted blacklist rules to protect economic activity, but the number of check-related defaulters continues to rise. Those on the list cannot access other banking services, which disrupts their financial operations.

The Nepal Rastra Bank’s Check Dishonor Certification Procedure, 2082, forbids issuing checks without adequate funds. If a check bounces, the bank must certify it upon request. The holder can submit the check and a request to any branch, including cooperatives. Once certified, the issuer and related parties can be added to the blacklist if the issue isn’t resolved.

CIC guidelines make it clear: loans or credit above NPR 10 lakh, unpaid installments, misused collateral, or failure to respond for 90 days can land an individual or entity on the blacklist. Fraud involving checks, drafts, credit/debit cards, foreign currency, or other financial instruments, as well as court-confirmed financial crimes, also lead to blacklisting.

Even bank staff or executives can be blacklisted if fined for violations under banking laws and fail to pay penalties. Essentially, any dishonored check—unless promptly settled with verification—can trigger a blacklist entry.

The government’s efforts to simplify processes have not stemmed the tide: check bounces continue to surge, keeping the blacklist swelling and leaving economic cycles under pressure.

People’s News Monitoring Service