Recent police investigations and arrests related to banking loans in Nepal are sparking debate over regulatory oversight. The core issue centers on whether the Nepal Rastra Bank (the central bank) or law enforcement agencies should be primarily responsible for policing the banking system. This increased scrutiny of lending and loan recovery practices indicates growing concerns about potential irregularities within the financial sector. The situation raises fundamental questions about the division of power and accountability in maintaining financial stability. Experts suggest a clear delineation of roles is crucial to avoid conflicts and ensure effective regulation. The ongoing investigations are likely to reshape the approach to loan management and compliance within Nepalese banks. Ultimately, the outcome will define the future landscape of financial governance in Nepal.