Credit Information Center blacklist tops 150,000 — how can a name be removed?

According to the Credit Information Center, the number of blacklisted borrowers has reached about 150,000.

Within microfinance alone, for which separate records have been kept since Shrawan 2079, the number has crossed 33,000.

Center data shows that at the end of Asar 2076, about 6,200 borrowers were blacklisted. This had risen to nearly 84,000 by Asar 2080, and to about 140,000 by the end of Asar 2083.

Those who fail to repay loans on time, misuse credit, or issue checks without sufficient funds in their account are blacklisted. Once blacklisted, banking transactions are halted and new loans cannot be obtained.

Section 88 of the Nepal Rastra Bank Act, 2058, gives the center authority to blacklist defaulting borrowers. Under Rule 6 of the Credit Information Regulation, 2059, the concerned bank or financial institution that provided the loan must submit an application to the center to add or remove a name.

The center decides whether to add or remove a name only after verifying the details received. Based on bank records, the center itself can also verify with the concerned bank and add or remove a name.

Nepal Rastra Bank has recently issued a 2082 procedure on verifying details of check dishonor.