What Does “Blacklisted by Bank” Mean in Nepal?
When a bank blacklists you in Nepal, it means your name is registered in the Credit Information Bureau (CIB) database as a defaulter or high-risk borrower. This affects your ability to:
✔ Get new loans
✔ Open bank accounts
✔ Obtain credit cards
✔ Secure financial services
Top 5 Reasons for Bank Blacklisting
- Loan Default (Missing 3+ EMIs consecutively)
- Unpaid Credit Card Bills (90+ days overdue)
- Cheque Bounce Cases (Under Cheque Act, 2059)
- Fraudulent Banking Activities
- Co-signing a Defaulted Loan (Joint liability)
How Blacklisting Works in Nepal
The CIB System
- Maintained by Nepal Rastra Bank (NRB)
- All licensed banks/financial institutions report monthly
- Records kept for:
- 5 years (for resolved cases)
- 10 years (for fraud cases)
Blacklist Categories
| Category | Description |
|---|---|
| CIB-1 | Normal borrower (good standing) |
| CIB-2 | Minor delays (1-2 EMIs missed) |
| CIB-3 | Serious default (3+ EMIs) – BLACKLISTED |
| CIB-4 | Fraud/willful default – SEVERE BLACKLIST |
Consequences of Being Blacklisted
✔ Loan Rejection by all banks/NBFIs
✔ Higher Interest Rates if any bank agrees to lend
✔ Employment Issues (especially in financial sector)
✔ Difficulty Renting Property (landlords check CIB)
✔ Legal Action (court cases for large defaults)
How to Check If You’re Blacklisted?
Free Methods
- SMS: Type CIBCitizenshipNo send to 33001
- Visit NRB Website: https://cib.nrb.org.np
Paid Methods
- Commercial Banks: NPR 500 fee for detailed report
- Credit Rating Agencies: Comprehensive analysis (NPR 1,500+)
How to Remove Blacklisting? (Step-by-Step)
1. Clear All Dues
- Pay principal + interest + penalties
- Get No Due Certificate from lender
2. Update CIB Record
- Bank must report clearance to NRB within 15 days
- Processing time: 30-45 days
3. Special Cases
- Cheque Bounce: Settle case in court first
- Fraud Cases: Requires legal clearance
Prevention Tips
✔ Set up auto-debit for EMIs
✔ Maintain emergency fund (3-6 months EMIs)
✔ Restructure loans before defaulting
✔ Avoid being co-signer unnecessarily
FAQs About Bank Blacklisting
1. How long does blacklisting last?
→ 5 years after repayment (10 years for fraud)
2. Can I get a loan while blacklisted?
→ Extremely difficult – only microfinance may consider
3. Does blacklisting affect my family?
→ No, unless they’re co-signers
4. What if I defaulted due to genuine hardship?
→ Negotiate rescheduling before blacklisting
5. Can I check someone else’s CIB status?
→ No without their written consent
Legal Rights & Recourse
- Right to dispute incorrect CIB entries
- Right to explanation from reporting bank
- Right to compensation for wrongful blacklisting
📌 Pro Tip: Regularly monitor your CIB status (once/year minimum)
Need Help? Contact:
- NRB Helpdesk: ☎ 01-4410028
- Banking Ombudsman: For dispute resolution
💡 Act immediately if you’re at risk – early action prevents blacklisting! ⚠️
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