The House of Representatives (HoR) unanimously passed two bills related to banking offenses and punishment, and legislation on Sunday, the state-owned national news agency RSS reported.
Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel presented the Banking Offenses and Punishment Bill-2081 for approval. Similarly, Law, Justice, and Parliamentary Affairs Minister Ajay Kumar Chaurasiya tabled the Legislation Bill-2081, according to RSS.
Before the passage, both ministers addressed concerns raised by lawmakers during discussions.
RSS further reported that DPM Paudel explained that the banking offense bill aims to establish a legal framework for investigating, prosecuting, and taking action against financial crimes, including cheque bounce cases. Meanwhile, Minister Chaurasiya stated that the legislation bill is designed to enhance citizens' empowerment.
Speaker Devraj Ghimire presented government-approved amendments, which were subsequently incorporated into the bills.
Due to an alarming rise in cheque bounce cases in recent years, the government introduced the bill to amend the Banking Offenses and Punishment Act, 2064 with provisions to increase the punishment for the guilty.
Police officials report a daily increase in banking offense cases, with the Kathmandu Valley registering the highest numbers. According to data from the Police Headquarters, 2,629 banking offense cases were recorded in Kathmandu, Bhaktapur, and Lalitpur from mid-July to mid-November in the current fiscal year, compared to 2,379 cases during the corresponding period last year. Nationwide, 4,359 banking crime cases were filed in the first four months, a rise from 4,190 cases during the same period of the previous fiscal year.
What is a banking offense?
Crimes against banking and financial system are banking offense. There is a universal practice of treating banking offenses as a crime because it is essential to increase public confidence in the banking and financial system, protect the rights and interests of depositors, ensure quality services of banks and financial institutions and maintain financial stability.
What is a cheque bounce?
A cheque presented in a bank is considered bounced if a person issuing the cheque to someone does it knowing that there is not enough money in the bank account, or if the bank deposit is insufficient. The person who received the cheque must file a case in court within six months of the cheque being bounced. If the claim is proven, there is a provision in the Banking Offenses Act, 2064, that the court can impose fines accordingly. The new law is expected to increase the punishment.
The headline has been updated for clarity.
