Banks urge for limited-hour transactions

KATHMANDU, May 4:  Nepal´s banking sector has urged the Maoist leadership to allow them conduct limited-hour banking transactions, as the indefinite strike that has crippled banking activities enters into the third day.



A senior official of Nepal Bankers´ Association (NBA) told Republica that the association made such a request to agitating UCPN (Maoist) on Tuesday after the banking-doing environment further worsened. [break]



We have conveyed the message to senior leaders of the party and they have responded to us positively but told us to take patience, said the official.



Bankers say that they have been compelled to make such a request after banking sector experienced a rapid deterioration in banking-doing environment.



There has been a rapid rise in insecurity compared to what we had experienced during the fist day of the strike, said the CEO of a leading bank, preferring not to be named. "We were able to conduct some back-door transactions on Sunday. But the situation completely changed from Monday after we received telephone threats to choose between operation and vandalism," said he.



The propose of the request is to ensure at least basic banking services to clients even during the adverse situation, said the official and added that Nepal Rastra Bank has also been informed about the growing difficulty in banking operations. "We have been encouraged by the daily two-hour relaxation (6-8 pm) that the Maoists have provided for business community and we are expecting similar respite for banking sector in daytime," said the official.



Only two of over half a dozen banks that Republica contacted on Tuesday said they were able to open transactions for more than two hours that too from back door and after careful securitization of clients.



A CEO of a medium-sized bank said the total transaction of his bank on Tuesday was hardly half-a-million rupees against average daily transaction of Rs 30 million. Apart from insecurity, lack of clients as well as difficulty for banks´ staffs to reach working place is another challenge that the banking sector is facing, he added.



Likewise, the banks have been not able to ensure smooth operation of Automated Teller Machine (ATMs) that they have installed in city areas. "Only the ATMs located in premises of main branches with enough security are in operation," said the CEO and added that it is virtually impossible to bring off-site ATMs as long as the ongoing Maoist agitation doesn´t come to an end.

Related story

Lending slows as banks focus on recovery of loans at fiscal yea...