Banking bodies urge no custody for Mega Bank CEO during probe
Summary
Four banking associations in Nepal have urged authorities not to detain Nepal Investment Mega Bank CEO Jyoti Prakash Pandey during his loan recovery investigation to protect public confidence in the banking sector.
Key Points
- Four banking and financial sector associations urged authorities not to detain Nepal Investment Mega Bank CEO Jyoti Prakash Pandey during an ongoing investigation.
- The associations emphasized that loan recovery is a primary responsibility of a bank’s CEO and protected under Section 57 of the Bank and Financial Institutions Act, 2073.
- They warned that arresting a CEO during loan recovery duties could damage public confidence and threaten institutional stability.
- The associations called for investigations to proceed on the principle of 'hear before you act' and for Pandey to remain out of detention while the probe continues.
