Kathmandu-The Nepal Bankers Association (NBA) has expressed serious concern over the arrest of Jyoti Prakash Pandey, Chief Executive Officer of Nepal Investment Mega Bank, and the ongoing investigation related to the case.

Issuing a press statement on Thursday, the NBA said that banks and financial institutions (BFIs) in Nepal operate under the Banks and Financial Institutions Act (BAFIA) 2017, as well as the policies and guidelines issued by Nepal Rastra Bank.

The association highlighted the role of BFIs in promoting economic growth, creating employment opportunities, and supporting entrepreneurship through the management of depositors’ funds.

According to the statement, Section 57 of BAFIA grants special authority to BFIs in cases involving loan recovery. The NBA clarified that loan recovery falls under the primary responsibility of the banking sector, with the CEO bearing key accountability in such matters.

The NBA warned that arresting a bank CEO merely for recovering a loan sends the wrong message to the public and could undermine the credibility and stability of the banking sector.

Considering the reputation of the bank and the dignity of the CEO’s position, the association urged the government to take legal action only after conducting a thorough investigation into the matter.
'Jyoti Prakash Pandey should be released from custody as soon as possible, and the investigation process should be carried forward in a fair manner,' the statement said.

The NBA also called on the concerned authorities to maintain a balance between legal procedures, institutional stability, and the credibility of the banking system while carrying out an impartial investigation.