CIB Blacklist & Banking Kasur in Nepal: Rules & Removal (2025)

The Consequence of Default

In Nepal’s financial system, the Credit Information Bureau (CIB) acts as the watchdog. “Being blacklisted” is one of the most feared outcomes for business owners and borrowers. But what exactly triggers it, and is it permanent?

1. Criteria for CIB Blacklisting (Directive 2081)

According to the latest NRB Unified Directive 2081, a bank must recommend a borrower for blacklisting in the following scenarios:

• Loan Default: Failure to repay the principal or interest for more than 90 days (or as specified by specific loan terms).
• Cheque Bounce: If a cheque bounces 3 times due to insufficient funds and the payee reports it.
• Misuse of Loan: Using a business loan for personal purposes or speculative investment (like stock market or land) when not authorized.
• Disappearance: If the borrower goes out of contact or absconds.

2. Consequences of Being Blacklisted

Once your name is on the CIB Blacklist:

1. Credit Freeze: You cannot get a loan from any bank or financial institution in Nepal.
2. Account Restrictions: New bank accounts cannot be opened, and existing ones may face operational restrictions.
3. Passport Ban: In severe cases of “Banking Kasur” (Banking Offense), the court can order a ban on foreign travel, and your passport may be seized or denied.
4. Business Impact: You cannot hold a director position in any public limited company.

3. Banking Offense (Banking Kasur)

While blacklisting is a civil/regulatory measure, Banking Kasur is a criminal offense governed by the Banking Offense and Punishment Act, 2064.

Common Offenses:

• Check Bounce: Knowingly issuing a cheque without funds.
• Fake Collateral: Submitting false valuation reports for land/property to get a loan.
• Unauthorised Overdraft: Withdrawing more money than available without approval.

Punishment:

If convicted under the Banking Offense Act, you face imprisonment and a fine equal to the disputed amount. For cheque bounce cases, the law has become stricter in 2025/2082 to curb financial fraud.

4. How to Remove Your Name from CIB Blacklist?

The process is straightforward but requires settlement. The Directive 2081 has introduced easier exit routes:

1. Clear Dues: You must pay the entire outstanding principal, interest, and penal charges.
2. Collateral Release (New Rule): If the bank recovers the dues by auctioning your collateral, or if you surrender the collateral to cover the debt, you can apply for removal immediately.
3. CEO’s Power: For “mistaken blacklisting,” the Bank’s CEO can now remove a name instantly without waiting for a Board decision.
4. Processing: Once the bank sends the recommendation, CIB updates the database within 3 working days.

Good News: Even while blacklisted, you are legally allowed to open a Salary Account to receive your wages.

Conclusion

Financial discipline is not just good practice; it’s a legal safeguard. If you are struggling with loan repayment, it is legally safer to approach the bank for loan restructuring or rescheduling rather than ignoring calls, which leads straight to blacklisting.