Janakpur, June 16: Nepal Rastra Bank (NRB) Governor Dr. Bishwanath Poudel has warned that strict action will be taken against any bank found cheating its customers.

Speaking to representatives of the Federation of Chambers of Commerce and Industry (FCCI) and various banks and financial institutions in Janakpurdham on Monday, Governor Poudel emphasized that banks must not exploit their customers under any pretext.

The warning came after businessmen in Dhanusha raised concerns that banks were auctioning properties mortgaged by borrowers, even when those borrowers had taken small loans in the past. Traders also complained that small traders and farmers are often ignored when they seek small loans.

Governor Poudel directed banks to treat all loan applicants respectfully and make special arrangements for farmers and illiterate customers in rural areas by offering services in local, understandable languages.

The discussion also highlighted that although the government’s efforts to control the problem of high-interest loans (meter byaj) are positive, poor people in rural areas still face difficulties in getting loans for essential needs like weddings. Governor Poudel stressed the need for additional policies to address these challenges.

Bank officials present at the meeting mentioned that the number of defaulters in Madhesh is increasing, which is becoming a growing concern for the financial institutions.