By A Staff Reporter
Kathmandu, Mar. 28: Governor of Nepal Rastra Bank (NRB) Maha Prasad Adhikari has said that the legal provision needs to be reformed to control technology-based banking malpractice.
Addressing a programme on 'Investigation, Prosecution and Supervision of Banking Misconduct organised by NRB' on Friday, he said that the recent trend of banking malpractice has added to the challenge.
Governor Adhikari said that the existing legal provision should be amended and modified to control the new trend. "With the development of information technology, new trends in banking malpractice are emerging," he said. "The existing law has not been able to control it, so the legal system needs to be reformed."
Speaking on the occasion, Attorney General Ramesh Badal said that the public's credibility towards the financial system should be enhanced by controlling the faults in the banking system.
He said that there should be effective coordination and cooperation between NRB, government lawyers and Nepal Police.
"If there has been a problem in the past due to lack of coordination between us, there is a need to improve it and make inter-agency coordination and cooperation effective," he said.
Inspector General of Police Shailesh Thapa Chhetri said that the achievement of controlling banking malpractice would be achieved only through mutual coordination and cooperation of all the three bodies.
He said that the financial transactions done through Hundi and verbal channel have created risk in the financial system.
He said that it was necessary to bring the financial transactions of cooperatives under effective regulation.
Executive Director of Supervision Department of NRB Dr. Gunakar Bhatta presented a working paper on the role of NRB as a bank supervisor.
He informed about the concept of supervision, legal system, supervisory practice and action taken by the bank.
Deputy Inspector General of Police and Director of the Central Bureau of Investigation Sahakul Bahadur Thapa discussed the process of investigation of banking malpractice by the bureau, illegal activities, problems seen in the investigation of banking malpractice and solutions.