Blacklisting Process in Nepal

Blacklisting is one of the trending topics nowadays in Nepal. However, people are unaware of the procedures and guidelines for blacklisting. Here we discuss and share information on How to process blacklisting.

The Credit Information Bureau (CIB) is typically associated with credit reporting agencies that collect and maintain credit information on individuals. Banks and Financial Institutions shall update details related to credit facilities in the online system within a specified interval of period.

Provisions related to Blacklisting In Nepal as per NRB Directives:


1. If the due date of the payment of the loan or any installment of the loan or interest exceeds 12    months.
2. Misutilization of availed credit facility. If the provided loan has been used for other purposes. 
3. Misuse of money and facility when it is proved during supervision and inspection.  
3. Misuse of collateral securities.
4. Missing Borrower and is not in contact for 90 days.
5. In case of bankruptcy of the borrower under prevailing laws.
6. In case the licensed institution files a case against the debtor in court.
7. Credit Card dues for more than 90 days.

Other provisions for Blacklisting:

1. Fraud by using fake cheques, drafts, foreign currency, credit cards, debit cards, bills, etc.
2. If any person, firm, company, or organized body is proven to be involved in financial offenses.
3. Failure to pay the loan taken by a person, firm, company, or organization with licensed institutions within the terms of the documents.
4. In case of insufficient Balance in the account.

Dishonor of cheques due to insufficient balance in the account is one of the most common issues nowadays which is referred to as Cheque Bounce in common language. As per NRB Directives, a person, firm, company, or organization should not issue cheques for any amount without sufficient balance in the account.

The process to follow blacklisting for Cheque Bounce due to insufficient balance in the account.

  1. In the case of a returned unpaid cheque, one can resubmit the cheque to the concerned bank or financial institution after giving at least two working days.
  2. Do not forget to receive a cheque return slip with the reason for nonpayment of the cheques.
  3. If the amount is not paid even after the provided time frame, the cheque bearer can inform the concerned bank in writing clearly. Keep in mind that such an application should be submitted within 6 months from the date of cheque issued.
  4. After receiving the written application, the concerned bank or financial institution shall give notice of seven days excluding public holidays to the person, firm, company or organization issuing the cheque to pay the amount of the cheque and if the amount is not paid even with the date, then the bank or financial institution proceed for blacklisting by writing to the Credit Information Center.
Awareness of one's rights, responsible financial behavior, and adherence to legal guidelines are crucial elements in avoiding or addressing blacklisting issues. To know more about please visit NRB Portal or read NRB Directives 2080 for detailed information.