Kathmandu. The impact of the scam at Karnali Development Bank is still being felt by the general depositors. Nearly one and a half years after the scam came to light, the aggrieved depositors have not been able to get their savings back.
Depositors have started an agitation at the central office of Karnali Development Bank in Nepalgunj.
After the financial condition of the bank deteriorated, the regulatory body Nepal Rastra Bank intervened and took control of the management of the bank. However, the depositors are angry that the process of return of deposits, restructuring and action against the guilty has not been carried out effectively even after a long time.
According to depositors, billions of rupees worth of money are still stuck in the bank. The common people, who have accumulated between Rs 8 million and Rs 7 crore individually, are now finding it difficult to carry on their daily lives.
What do the victims say?
Depositors participating in the protest said that their blood, sweat and earnings, remittances sent from foreign employment and years of savings are stuck in the bank.
“We have not been able to withdraw the money we believe we have kept in the bank and it is difficult to meet our basic needs like household expenses, education and health,” said one of the victims.
The agitating depositors have put forth some major demands from the government and regulatory bodies. They have demanded that the depositors’ money be returned immediately, a clear restructuring plan of the bank be made public, strict action be taken against those involved in the scam and the depositors’ money be secured by confiscating the property of 7 generations of the culprits.
This incident has affected not only the customers of one bank but also the confidence in the financial system as a whole. At the local level, small businesses, farmers, employees and families in foreign employment have been directly affected.
