February 2: CPN (UML) Chair KP Sharma Oli has emphasized the need for mutual consent of both parties involved in banking transactions to increase bank interest rates.

Addressing the 7th National Convention of the Nepal Bank, Insurance and Financial Institutions Employees' Association at the UML Central Office in Chyasal of Lalitpur on Friday, Oli stressed the need to make provisions mandating that banks take consent of the borrowers before they hike the bank interest rates.

The UML Chair accused the banks and financial institutions of inflating interest rates unilaterally. "The banking interest on loans increases substantially in a short span of time putting borrowers in trouble to repay the loan, triggering the banks to seize the collateral and sell it”.

Advising the banks and financial institutions to change the interest rates with consent of the borrowers, Oli held that banks have bigger duty of monitoring and helping their clients instead of seizing the collateral and selling it.  

Former Prime Minister Oli also called for monitoring whether the amount invested by the banks is properly utilized or not. He reiterated that the banks should support the development and they should provide loans to those people willing to start a new venture from the small capital.

Former Finance Minister Dr Yub Raj Khatiwada urged the government to intensify efforts to improve the economy of the country.