Bankers on Sunday informed the central bank that banking services could be severely affected in the absence of fuel to run generators.

Due to load-shedding, banks and financial institutions depend on generators for smooth operation of their servers.

During their meeting with Nepal Ratra Bank (NRB) Governor Chiranjeevi Nepal, they said they were not receiving enough fuel.

Nepal Bankers’ Association (NBA) President Upendra Poudyal said they reminded the governor that if the main servers are shut down due to the lack of the power, entire services will be affected. “A majority of the banks have already discontinued evening service,” he said. “It will be difficult to operate ATM machines too if the servers are disrupted.”

As industries and business in the Tarai region have remained shut for the last 50 days, the central bank had invited the bankers representing commercial banks, development banks and finance companies to discuss the situation. Representatives from the NBA, Development Bankers’ Association of Finance Companies’ Association took part in the meeting.

The bankers also informed the NRB about a possible rise in credit defaults due to the Tarai strikes as businesses and industries have not been able to generate enough cash flows to service their loans. “As industries, educational institutions and trading businesses have been adversely affected by the banda, chances of a rise loan default rate are high,” said Poudyal

The prolonged Tarai banda has come just after the April 25 earthquake that has put loans worth Rs38 billion at risk, according to the central bank.