The president of Nepal Bankers’ Association Radhesh Pant said that if the threat of extortion continues, banks may be compelled to shut down their branches one by one.

Reacting to the news report that the Himalayan Bank Limited shut down its Banepa branch after the local Maoists demanded Rs 1 million as donation, Pant said the NBA has been consistently appealing for a complete halt to such forced donation.

Although he did not say the extortion campaign in the banks was rampant, Pant hinted that the bankers were getting frustrated with the intimidation. “We have a big responsibility to our clients and depositors. Whatever we do, we have to do in a transparent manner,” he said indicating that the banks cannot pay donations in a secret manner.

Pant said the NBA has already apprised the Finance Minister and Home Minister about the problems faced by the banks. “If again, the problem persists, the banks have no option other than shutting down their branches,” he added.

In recent weeks, Maoists have stepped up what they claim to be ‘voluntary donation’ raising campaigns. A few days ago, hoteliers had also threatened to shut down hotels if the Maoists continued to demand huge donations and impose forced unionization.

Industrialist Rajendra Khetan said that the Maoists are harming their own image by engaging in such pressure tactics. He said the raising of donation was against the code of conduct signed by the Maoists and the government.