April 19: Entrepreneurs have complained that the banks and financial institutions (BFIs) have not followed the government directives to provide loan renewal facility under the relief package announced to support the sectors affected by coronavirus.

The government had directed BFIs to support the entrepreneurs with repayment scheme.  Under the repayment scheme, the banks were requested to extend the time period for paying the installments and not to charge any interest between March and June. This was expected to provide some respite to the entrepreneurs affected by coronavirus pandemic.   

However, the entrepreneurs complained that banks have not abided by the government directive.

Banks have allegedly deducted the installment amount unilaterally from the entrepreneurs’ bank accounts and charged interest on loans arguing that the relief package announced by the government was unacceptable to them.

Following this, the entrepreneurs said that the governments relief package was just for the sake of announcement.

Subodha Kumar Gupta, president of the Association of Nepalese Rice, Pulses and Oil Industry, informed New Business that the banks have deducted installments of loan from the entrepreneurs’ bank accounts without any prior notice.

“The relief package allocated by the government was meaningless, as the banks have not accepted the directives,” he said.

He additionally informed that the banks have misinterpreted the relief package and misused their authority.

However, the bankers clarified that they have deducted the installment amounts only from the debtors having fund in their accounts. 

“We are not forcing anyone to pay their installments, we are only deducting the amount from the debtors who already have funds in their accounts,” informed a banker in Birgunj requesting anonymity.