Kathmandu, March 28: The government decides to amend the National Criminal Procedure (Code) to criminalise loan sharking. Cabinet meeting held on Tuesday decided to proceed with the amendment process in the National Criminal Procedure (Code) Act, 2017 to include loan sharking as a criminal offence and bring the loan sharks under the legal ambit.
Although there is a law that bars charging interest at a rate of more than 10 percent in household transactions, the law has not defined loan sharking as a crime. Currently, loan sharking is essentially categorised as an offence under the civil code though acts such as blackmailing, extortion and other exploitations fall under criminal offences. In this condition, the victims have to fight the deep-pocketed loan sharks alone.
If the code is amended as per the decision of the Council of Ministers on Tuesday, it will open the way for the government to register a case and conduct legal fights against loan sharks.
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