The law aimed to control malpractices in the banking sector has not proved effective even after one- and-a-half years of its promulgation. The authorities concerned accept that banking offences have not declined despite the provisions in the law aimed to control them. Due to the failure in the implementation of this law, cases like cheque bouncing, fraud and overvaluation of collaterals have continued unabated.
 

Bhaskar Mani Gyanwali, the Spokesperson at Nepal Rastra Bank (NRB) accepted that the banking offences have not been controlled and argued that this is because very few people know about the legal provisions. Giving example of the cheque bounce, Gnyawali said though the law has provisions for penalty, imprisonment and black listing of the account holder who issues such cheques and almost all banks have been experiencing cases of cheque bounce, nobody has filed a legal complaint, said Gyanwali.
 

In case of bounced cheque, Banking Offence and Punishment Act 2008 has a provision of penalty up to the amount of the cheque, confiscation of the money in the account of the issuer of such cheque and imprisonment of one to five years depending on the amount of the cheque.