Himal Press 
Microfinance victims during a discussion with officials of the finance ministry (File Photo)
KATHMANDU: The task force formed to address the problems of microfinance victims has submitted its report to the government.
The committee, led by Nepal Rastra Bank (NRB) Deputy Governor Dr Nilam Dhungana Timsina, presented the report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Tuesday.
The task force has advised the government to regulate the financial transactions of savings and credit cooperatives. It also suggested that only microfinance institutions licensed by the NRB should be allowed to conduct microfinance transactions.
At present, different organizations are conducting microfinance transactions in the name of various microfinance programs.
The task force further recommended instructing microfinance institutions to collect data on defaulting borrowers and submit it to the Nepal Rastra Bank within 60 days, and identify borrowers who are deliberately not repaying loans.
Additionally, it suggested that microfinance members should borrow from only one institution, use loans solely for their intended purpose, and repay installments regularly.
Receiving the report, Minister Poudel said the government will work in coordination with all stakeholders to implement the recommendations made by the task force.
On the occasion, Dr. Timsina said there is a need to effectively promote financial literacy programs to educate people.
A total of 55 microfinance institutions are operating across the country, including three wholesale lenders. These institutions have disbursed a total of Rs. 453.11 billion in loans.
