A notice issued by Nepal Bankers Association for its member banks across the country to limit their services in order to avoid crowding to prevent coronavirus spread has sparked controversy.

Customers say that the new rule has created confusion among the bankers as some banks stopped the withdrawals even though the association’s notice clearly told banks not to accept deposits of less than Rs50,000. The directive was enforced on May 13.

According to the notice, banks will be providing the most necessary services only to avoid crowds and it is applicable on all branches during the lockdown period.

One issue, according to the copy of the notice seen by the Post, is that banks will not allow deposit amounts less than Rs50,000. Through the notice, the association has advised its customers to adapt with the digital banking system in the time of pandemic.

But in some places, customers complained that banks had even stopped customers from withdrawing money which amounts to less than Rs50,000. But the central bank said, they have not issued any circulars in regard to withdrawing money.

Dev Kumar Dhakal, spokesperson for Nepal Rastra Bank, said the central bank has not issued any circular to banks to limit deposit and withdrawal amounts.

“But we have given a green signal for the new rules issued by the association to limit the crowds in banks based on suggestions from security forces that have been complaining about the growing movement of people to go to banks,” Dhakal said. “So far, the banks have asked customers not to come to deposit less than Rs50,000. People can keep small amounts of money securely at home rather than going to the banks in this pandemic situation.”

He said that the move was taken as it would discourage customers from frequently visiting banks and help control the spread of virus.

“But customers can make loan repayment and make money transfers through banks if they don’t use the digital banking system,” he added

Anil Sharma, executive director of the association, said the new rule was enforced to discourage customers from coming outside their homes.

“But it does not mean that banks are not accepting deposits less than Rs50,000,” he said. “We provide the banking services as per the needs of the customer. But at this time of crisis, keeping a small amount of money at home is more secure as there is a risk that customers may catch Covid-19 if they make frequent visits to banks.”

According to the central bank, as many as 6,000 employees of the banks and financial institutions have been infected with the coronavirus in the second wave of the pandemic that started in mid-April and peaked in the first week of May.

As of now, in the first and second wave, more than 17,000 employees of banks and financial institutions have been infected, the central bank’s spokesperson said.

A staff working in Sanima Bank told the Post that they have been taking the deposit of less than Rs50,000.

“Customers are coming as many don’t know about the rule. We accept the deposit and tell them not to visit the bank again, except in an emergency, as their movement is a risk for bank employees too,” he said asking that his name not be used.

According to Sharma, there is no restriction on withdrawal.

“Customers can withdraw any amount according to their needs. There is no limitation on that,” Sharma said

As the government has ordered not to go outside of the home unless anything urgent occurs, the association has requested to use digital banking and make transactions from home.

Banks' branches have been opened following the central bank circular and also following the respective local administration’s orders, Sharma said.

The central bank has verbally directed banks to reduce the number of branches that are opened effective from Sunday in Kathmandu Valley with security forces complaining about the increasing risk of Covid-19 infection.

According to Dhakal, a commercial bank can open three branches in Kathmandu, two in Lalitpur and one in Bhaktapur including its head office.

Similarly, a development bank can open two branches in Kathmandu and one each in Lalitpur and Bhaktapur.

A financial institution can open one branch each in Kathmandu, Lalitpur and Bhaktapur.

Dhakal said that the head offices of commercial banks have been allowed to operate with 20 percent of total employees.