Rising Attacks on Banks Push Regulators, Police and Bankers into a United Security Front

A recent surge in attacks, robberies and harassment targeting banks and banking personnel has raised serious concerns about the safety of Nepal’s financial system, prompting regulators, law-enforcement agencies and bankers to coordinate their response. With incidents ranging from armed robbery to physical abuse of bank staff, the issue has moved beyond isolated crimes and is now being treated as a systemic security challenge.

In response, the central bank has taken the lead in initiating high-level discussions aimed at strengthening protection for financial institutions. On Friday, **Nepal Rastra Bank Governor Dr. Bishwo Poudel held a meeting with Nepal Police Inspector General Dan Bahadur Karki, focusing on the security of banks and employees across the country. Representatives from the Nepal Bankers’ Association also participated, signalling a rare show of collective institutional concern.

According to the central bank, the discussion centred on the growing number of bank-related security incidents, increasing anti-bank sentiment, and repeated attacks on employees while on duty. Senior officials of Nepal Rastra Bank, including the deputy governor, were present, underscoring the seriousness with which the regulator views the situation. Officials indicated that the risks facing banks can no longer be treated as routine operational issues.

From Robbery to Arson Attempts

Recent incidents suggest that threats to banks are escalating in both scale and intensity. On Poush 29, a group of robbers looted over NPR 31 million from a branch of Nepal SBI Bank in Sindhuli district after taking staff under control. The branch is located around 35 kilometres from the district headquarters, highlighting the vulnerability of remote banking outlets with limited security presence.

Other cases point to a broader pattern of intimidation. In Saptari, employees of Jyoti Bikas Bank were assaulted while attempting to follow up on loan-related matters. In Sunsari, an attempt was made to set fire to an NIC Asia Bank office by pouring petrol inside the premises. Bankers argue that these incidents demonstrate a worrying shift from financial crime to direct violence and symbolic attacks aimed at instilling fear.

Growing Culture of Hostility Toward Banks

Bankers say the problem goes beyond criminal acts. In recent months, incidents of public humiliation, physical abuse, threats, and forced demonstrations against bankers have increased. Acts such as smearing employees with black paint, garlanding them with shoes, and openly declaring refusal to repay loans have become part of what bankers describe as an “emerging culture of lawlessness.”

As a result, the banking sector now faces what industry leaders call “misconduct risk”, in addition to traditional risks such as credit, liquidity, market and operational risks. They warn that unchecked hostility could make routine banking operations unsafe, especially in rural and semi-urban areas where staff already work under limited protection.

Weak Enforcement and Political Shielding Alleged

Bankers have repeatedly pointed to weak enforcement as a key factor behind the rise in such incidents. They argue that failure to take swift and visible action against offenders has emboldened anti-bank elements. In some cases, bankers allege that political influence has allowed perpetrators to evade accountability, further eroding confidence among financial institutions.

This perceived lack of deterrence, bankers say, has allowed violence and intimidation to be normalised. Without clear legal consequences, banks fear that the line between civil protest and criminal behaviour will continue to blur.

Threat to the Financial System Itself

Industry representatives warn that the implications extend far beyond individual banks or employees. Persistent attacks on bankers, they argue, could undermine trust in the entire financial system. If banks become hesitant to operate freely or enforce loan recovery due to fear of retaliation, credit flow to the economy could slow, affecting businesses, employment and overall economic stability.

Bankers stress that while loan defaults are a financial concern, violence against bankers is a systemic risk. If not addressed decisively, it could disrupt the financial cycle and weaken the credibility of regulated institutions.

Pressure Mounts on the Government

Against this backdrop, banking institutions and employee unions across commercial banks, development banks, finance companies and microfinance institutions have begun to speak in a unified voice. They have formally urged the government to ensure effective security for banks and bankers, calling for clear policy direction and enforcement.

Bankers have also held meetings with the Prime Minister, the Finance Minister and the Home Minister, pressing for strong measures to curb anti-bank activities. According to the Bankers’ Association, past incidents were often treated as minor disputes, a mistake they believe has contributed to today’s deteriorating situation.

They warn that unless attacks on banks and bankers are treated as serious criminal offences, Nepal risks greater instability within its financial system. The ongoing coordination between the central bank, police and bankers is therefore being seen as a critical first step, but one whose success will depend on sustained government action and visible enforcement on the ground.