February 19: Four prominent associations linked to banks and financial institutions in Nepal have demanded legal action against individuals making misleading statements targeting the financial sector. In a joint statement issued on Sunday, the Nepal Bankers Association, Development Bankers Association Nepal, Nepal Financial Institutions Association, and Nepal Microfinance Bankers Association have urged for measures to address false claims.

The associations have alerted the government to the potential repercussions of disseminating misleading information, emphasizing its potential to disrupt the entire financial sector. Additionally, they have appealed to the public to refrain from adhering to deceptive narratives.

The statement specifically addresses recent remarks made by controversial figure Durga Prasai, advocating for loan non-payment and encouraging individuals to withdraw savings from specific banks and financial institutions.

The joint statement emphasizes the importance of relying on official information from authorized sources and urges government agencies to take appropriate action against those spreading false information and causing societal disruption.

Furthermore, the statement highlights the adherence of Nepalese financial institutions to international banking principles and regulations set by the Nepal Rastra Bank, affirming their ability to manage risks effectively and ensuring the safety of deposits.