BUSINESS ADMINISTRATION AND MANAGEMENT STUDIES: Information Network and Credit Information Center of Nepal Rastra Bank

Wednesday, June 28, 2017

Information Network and Credit Information Center of Nepal Rastra Bank

Establishment of Information Network:

In order to promote banking and financial system of Nepal, the central bank of Nepal commonly known as Nepal Rastra Bank, has established information network. The central bank operates the information network. The main objective of establishing the information network is to establish the communication among different licensed banks and financial institutions.

Establishment of Credit Information Center (CIC) :

Nepal Rastra bank establishes, regulates as well as manages one credit information Center. This center secures the licensed bank and financial institutions from the upcoming problem and challenges aroused in respect of loan. The main purposes to establish this center are as follows:-

To obtain information on the flow of credit from commercial banks and financial institutions. This helps to ensure fairness and appropriateness in credit flow.

To require the exchange of the information among the commercial banks and financial institutions.

To require to send the name-list of the debtors that do not repay the loan in time or misuses the loan to the Center.

To require to obtain on compulsory basis the information from the Center prior to making investment or advancing loan of an amount more than the limit prescribed by the central Bank.

To have the name-list received blacklisted by the Center upon confirmation and to take necessary action in this regard as the central bank deems to be fit.