Now, Bank and Financial institution will be allowed to issue notice of collateral auction more than 6 months.

Oct Tue 2021 06:19:30

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Now, Bank and Financial institution will be allowed to issue notice of collateral auction  more than 6 months.

Kathmandu. From now on, no bank or financial institution will be able to issue notice of collateral auction even six months before the loan is exceeded. The National Bank of Nepal (NBN) has issued a new provision on debt recovery stating that at least six months have elapsed since the debt was exceeded and at least six months have elapsed before proceeding with the public information and collateral auction for debt recovery.

NRB has stopped the banks from issuing public notice in the name of the borrower within one or two months of exceeding the loan limit and hastily initiating the auction of the collateral held by the borrower.