Cancelling cheques may lead to CIB blacklisting

Cancelling cheques may lead to CIB blacklisting

The central bank has tightened the stop payment after issuing cheques. "If anyone orders stop payment after voluntarily issuing cheques to bearer could be blacklisted," the central bank said, adding that a cheque issuer if asks a bank or financial institution to cancel a cheque or payment after writing a cheque will have to justify their stop payment request. "If the issuers stop payment without any reason –except for thefts, loss and unauthorised withdrawal – they could be blacklisted." The central bank has directed the banks and financial institutions to recommend the names of account holders, who cancel payments of cheques without genuine reasons, to Credit Information Bureau (CIB) for blacklisting. Likewise, the issuer has to provide believable testimonies and consent of the bearer as well not to be blacklisted. After being blacklisted the person or firm will be ineligible to acquire or reschedule a new loan from financial institutions, and get a credit card. Pre-paid remittance cards KATHMANDU: The central bank has allowed remitters to issue a pre-paid remittance card in coordination with financial institutions. The central bank’s Foreign Exchange Management Department has allowed remittance companies – with a paid up capital of Rs 100 million – will be allowed to issue re-paid remittance cards to their clients if a commercial bank backs and work as its representative. The card will facilitate inward remittance from foreign countries as the remittance company can issue a card to beneficiaries of their clients abroad, who send money directly to the card through the remittance company. The card also aims at making remittance hassle-free and cost effective while improving banking habits of the population that receives remittance.
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