Kathmandu. Revati Nepal, Executive Director of Nepal Rastra Bank, has said that the Rastra Bank is going to introduce a provision that one person cannot take multiple loans from microfinance.
This was said by Executive Director Nepal while speaking at the interaction program on microfinance, causes and solutions to the crisis organized by Economic Journalist Association Sejan in Kathmandu on Monday.
He said that since there are more than 33 lakh borrowers of microfinance, they cannot see the file of each one and the organization should look into it. He said that recently, being a member of many microfinance institutions, one person was found to be in trouble by taking loans from all of them. He mentioned that many problems will be solved only if the distribution of dividends to microfinance institutions is strict.
He said that due to the lack of financial literacy, the borrowers could not use the loans. He said that it is necessary to solve the recent problems in microfinance. He said that it is necessary for microfinance employees to improve their behavior at the local level, and the problem is increasing at the local level due to meter trading.
Nepal asked the employees of the microfinance institution to go to the customer’s house before 10:00 am and to 11:00 pm to immediately stop the work of torturing and pulling cattle and putting chukul in the house. He said that microfinance is an example of good work and said that if everyone is put in one group, the contributions made for 30 years will not work. He urged everyone to file a complaint with the Rashtra Bank if any microfinance institution charges more than 15 percent interest. Nepal said that microfinance should not be abolished but the problems should be solved and modified.
He said that recently 5 to 10 percent microfinance institutions have done bad work and correction will be done. He also accused some share players of corrupting microfinance by entering microfinance recently. He said that due to the corona epidemic and lack of liquidity, problems have arisen in microfinance.
Similarly, Jagat Pokharel, president of Microfinance Association Nepal, said that there is a problem because there are many microfinances. He said that microfinance institutions should work within the guidelines given by Nepal Rastra Bank and action should be taken if they do not comply. He said that microfinance is concerned with how to increase production and manage the market by investing in rural areas.
He said that he is looking closely at the problems seen in microfinance recently. He also said that he is ready to solve the problem of microfinance.
