Kathmandu, August 18

Banks and financial institutions (BFIs) have sought two more weeks for the preparatory works before the Secured Transaction Registry Office commences its operation to pave the way for issuing loans with movable and intangible assets as collateral.

Though the office has made arrangements for registration of all types of movable and intangible assets, based on which BFIs can legally extend loans, it has been postponed for two weeks.

The office, located at Credit Information Centre Ltd (CICL), was supposed to come into operation from today.

“We have postponed the operation of Secured Transaction Registry Office for another two weeks at the request of BFIs,” CICL CEO Anil Chandra Adhikari told The Himalayan Times.

As per Nepal Bankers’ Association, BFIs have been providing orientation and training to their officials regarding the issuance of loans with collateral of movable and intangible properties and the function of Secured Transaction Registry Office, which is why they have asked for another two weeks for preparations.

The Secured Transaction Registry Office had also trained the officials of BFIs and organised public awareness campaigns throughout the country to educate people about their services.

The Ministry of Finance allowed CICL to set up Secured Transaction Registry Office recently. However, the Secured Transaction Act was endorsed by the Parliament in 2006.