Central bank seeks government security assurance after bank staff assault

KATHMANDU: Nepal Rastra Bank (NRB) has sought security assurances from the government after a physical assault on employees of Jyoti Bikash Bank raised serious concerns over the safety of banking staff working in the field.

The central bank moved to engage government security agencies after banks warned that employees were increasingly unable to carry out field-level duties due to rising threats and physical attacks linked to loan recovery and supervision work.

NRB Governor Dr Bishwanath Paudel contacted Home Minister Om Prakash Aryal and Inspector General of Police Dan Bahadur Karki by telephone, requesting immediate security arrangements and action against those involved in the assault, according to officials familiar with the matter.

Incident in Saptari

The attack occurred in Saptakoshi Municipality of Saptari district, where employees of Jyoti Bikash Bank were assaulted while visiting Saptakoshi Integrated Agro Farm Pvt Ltd in connection with loan-related matters.

Video footage of the incident, showing bank staff being assaulted and humiliated, was sent to the NRB governor and senior officials on the same day by leaders of banking associations, including Nepal Bankers’ Association President Santosh Koirala. The footage later went viral on social media.

In the video, a bank employee is seen being smeared with black paint and beaten, while pleading for mercy. The assault was reportedly carried out by a borrower, including a female individual involved in the attack.

Delayed Institutional Response Draws Criticism

At the time of the incident, Governor Paudel was in Kathmandu. Media outlets had not yet reported the attack. When the incident was reported the following day, the governor was on an official visit to Rukum and Rolpa for policy-related engagements.

The delay in a formal response drew sharp criticism from banking employee unions and umbrella organisations. Statements condemning the attack were issued by the Development Bankers’ Association and other banking sector organisations. The Confederation of Banks and Financial Institutions Nepal (CBFIN) also expressed serious concern.

Only after sustained pressure did NRB formally seek security assurances from the government.

NRB Sends Senior Official to Investigate

Governor Paudel has dispatched Bisrut Thapa, head of the Financial Institutions Supervision Department, to Saptari to ascertain the facts surrounding the assault. He has also instructed Deputy Governor Bam Bahadur Mishra to prepare an official statement condemning the incident.

Banking sector representatives have expressed dissatisfaction with what they describe as the central bank’s failure to play a timely guardian role when staff were attacked while performing duties mandated by law.

Banking Sector Voices Alarm

“Depositors’ money must be recovered from borrowers to protect the financial system,” said a senior banking organisation leader. “Even in such cases, the central bank has not formally stood with employees. Instead, statements made at the governor level portraying collateral auctions as corruption have emboldened unruly groups.”

Senior NRB officials have also privately described the incident as a troubling experience, noting a contrast with past responses to similar cases.

Comparison With Past Incidents

In Bhadra last year, employees of Abhiyan Laghubitta and National Laghubitta were assaulted by borrowers. At the time, then governor Maha Prasad Adhikari summoned the police chief, raised the issue with the finance minister, and jointly briefed the prime minister. The government subsequently increased surveillance and took action against individuals involved in disruptive activities.

“A climate of lawlessness is spreading,” said a senior NRB executive director. “If employee safety cannot be ensured, the financial sector itself will be at risk. Friendly phone calls are not enough to convey seriousness to either the home ministry or the police leadership.”

Calls for Immediate Action

Former governor Adhikari described the Saptari incident as serious in nature, stressing that attacks on bank employees performing official duties undermine financial stability.

Nepal Bankers’ Association President Santosh Koirala said such incidents have created fear among bank staff and called for immediate action by state authorities.

“This is a criminal act,” Koirala said. “It demoralises employees. Those involved must be brought to justice without delay.”