Bankers
today asked the finance minister Shankar Prasad Koirala to implement Secured
Transaction Act immediately.
"The
Act is key to make banking service more accessible and a responsible,"
said the office bearers of Nepal Bankers Association (NBA) during the meeting
with the minister at his office.
The Secured Transaction Act was
brought in 2006 to make provisions to secure obligations with
movable and intangible property – by making consolidated legal provisions in
relation to secured transactions for the maximum promotion of economic
activities for the economic development of the country. "However, due to lack
of implementation of Secured Transaction Act, the banks are facing difficulty
in defining collateral other than land," said the team led by NBA president
Rajan Singh Bhandari.
The Act has widened the meaning of collateral saying 'any
intangible property of any nature, fixtures, movable property such as timber to
be cut, minerals to be extracted, which is subject to a security interest, and that
arises in the future, collateral located in or outside of the country, accounts
or secured sales contracts that have been sold, leased goods and proceeds of
collateral.'
The banks
that contribute to around Rs 7 billion to national coffer annually and are
transparent should not be compared to cooperatives, they added.
The minister, on the occasion,
promised to look into the matter.
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