Two days after the government's decision to freeze bank accounts of the agitating transport entrepreneurs committees, the central bank froze their accounts today.
The central bank spokesperson Narayan Prasad Paudel confirmed that the Nepal Rastra Bank (NRB) today has directed to all banks and financial institutions (BFIs) to freeze the bank accounts of 245 such committees of transport operators.
"We have already instructed to stop making payments from the bank accounts of these committees but today we have issued official circular," he said, adding that the banks will now freeze their accounts.
The central bank – after correspondence from the Finance Ministry – has directed BFIs to freeze the accounts of transport committees defying the government, though they have more than two months time – by the beginning of next fiscal yaer – to convert the transport committees into companies.
The transport committees, which were operating as cartels, had started agitation against a government move to implement the new Transport Regulation. The regulation has not recognised their transport committees which are blamed for practicing cartel and asked them to register under Company Act.
Though, the government can seize the money in the bank accounts of the organisations, whose registrations have been scrapped, according to the law, it is said to be against the individual right to property.
The Home Ministry along with Transport Ministry – on Friday – had decided to freeze bank accounts of transport committees after they halted the service across the country.
The central bank spokesperson Narayan Prasad Paudel confirmed that the Nepal Rastra Bank (NRB) today has directed to all banks and financial institutions (BFIs) to freeze the bank accounts of 245 such committees of transport operators.
"We have already instructed to stop making payments from the bank accounts of these committees but today we have issued official circular," he said, adding that the banks will now freeze their accounts.
The central bank – after correspondence from the Finance Ministry – has directed BFIs to freeze the accounts of transport committees defying the government, though they have more than two months time – by the beginning of next fiscal yaer – to convert the transport committees into companies.
The transport committees, which were operating as cartels, had started agitation against a government move to implement the new Transport Regulation. The regulation has not recognised their transport committees which are blamed for practicing cartel and asked them to register under Company Act.
Though, the government can seize the money in the bank accounts of the organisations, whose registrations have been scrapped, according to the law, it is said to be against the individual right to property.
The Home Ministry along with Transport Ministry – on Friday – had decided to freeze bank accounts of transport committees after they halted the service across the country.
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