The recent economic crisis has seen a significant uptick in banking offenses, with incidents such as uncashed checks and cooperative fraud on the rise. Data indicates a substantial increase in cases related to banking offenses, often leading to legal proceedings with the government as the plaintiff.

Data collected for the fiscal year 2079/80 reveals a surge in such cases in Kailali. During that period, 103 cases of banking offenses were registered, leading to numerous arrests by the police. Troublingly, some borrowers have been issuing blank checks when obtaining loans, only to have lenders withdraw funds as they see fit, resulting in bounced checks.

Under Section 3 (ga) of the Banking Offenses and Punishment Act 2064, knowingly issuing a check without sufficient balance constitutes an offense. Both the Bill of Exchange Act 2034 and the Banking Offenses and Punishment Act 2063 outline penalties for check bouncing.

According to Section 207 (ka) of the Bill of Exchange Rights Act, those knowingly issuing checks without adequate bank deposits or insufficient funds, resulting in dishonor upon presentation, can face imprisonment for up to three months, a fine of up to three thousand rupees, or both. They must also pay the specified amount and interest to the check holder.

Similarly, the Banking Offenses and Punishment Act 2064 prescribes three months' imprisonment, fines, and other penalties as necessary. In Kailali, 76 out of 130 banking offense cases from the previous year have been resolved, while 27 cases remain pending.