Jhapa, July 30

Most of the banks in Jhapa have suspended the practice of providing loan against gold after the gold deposited as collateral was found to be fake.

Gold kept at Rastriya Banijya Bank Birtamode branch as collateral was found to be fake. The the gold testing machine showed the metal was 100 per cent gold when it was being deposited in the bank.

However, when the metal was melted metal later, only 11.55 per cent pure gold was extracted. Customers approaching the banks for loans against gold s collateral have been returning empty-handed after the incident.

“Even in our branch, when the testing machine was applied it was found to be 24 carat gold. But, only 11 per cent was pure gold after it was melted,” said Subodh Sharma of Sunrise Bank Birtamode branch. Credit officer in Sunrise Bank’s Birtamode branch Sant Kumar Karki said his bank had stopped issuing loan against gold two weeks ago after fake gold was found. Karki said re-issuing gold loans depended on further directive from the head office.

Meanwhile, Rastriya Banijya Bank Birtamode branch manager is busy registering cases at the Area Police office Birtamode against people who deposited fake gold as collateral with the bank. Branch Manager Yubraj Uprerti of Rastriya Banijya Bank said gold loan was halted as gold was found to be fake after it was melted.