KATHMANDU: A 29-year-old banker has been arrested after he allegedly intimidated a businessman on the pretext of helping him resolve loan related issues in a different bank.

The suspect, identified as Prakash Regmi, is a promoter of Narayani Development Bank. Earlier, he was associated with the Kuber Merchant Finance as employee and advisor in different periods of time, police said.

Posing himself as an Nepal Rastra Bank official, Regmi had approached Jitendra Bahadur Shrestha to tell him he was blacklisted by the authorities for taking loan from the Kumari Bank in an unauthorised way.

Regmi asked Shrestha to meet him at a restaurant in Lazimpat, where he told the Kumari Bank resorted to the central bank and the Nepal Police's Central Investigation Bureau seeking action against him for banking fraud. He, however, offered Shrestha to do the needful to get the cases dismissed in exchange of money, claiming that he had rapport with the CIB officials as well.

After Regmi kept on bugging Shrestha for two weeks or so, with offer to help him dismiss the cases and threat that he would face jail term for five years along with the seizure of plot of land kept as collateral, Shrestha lodged a complaint at the CIB yesterday.

Subsequently when a team of security personnel went to get hold of him, police said, Regmi misbehaved with them.

The accused was arrested and sent to the Metropolitan Police Circle, Maharajgunj, for further action, the CIB said.

Regmi is a permanent resident of Kerabari, Gorkha, and is currently residing in Baluwatar of Kathmandu.