header banner
ECONOMY

NRB takes action against six banks and financial institutions

KATHMANDU, Jan 27: Nepal Rastra Bank (NRB) has taken disciplinary actions against six banks and financial institutions for non-compliance with mandatory regulations.
By Republica

KATHMANDU, Jan 27: Nepal Rastra Bank (NRB) has taken disciplinary actions against six banks and financial institutions for non-compliance with mandatory regulations. 


The institutions affected are Global IME Bank, Prabhu Bank, Himalayan Bank, Muktinath Development Bank, Garima Development Bank, and Reliance Finance. These institutions have been alerted and taken action for violating the rules of NRB.


Related story

NRB tells BFIs to stop interest rate distortion, other anomalie...


The central bank has directed these institutions to refund any amounts collected from customers that contravene established rules. Specifically, Global IME Bank is instructed to return funds to customers, as it allegedly charged premiums exceeding limits set in point No. 3(8) of the Integrated Directive-2079, a breach of NRB's directives.


Prabhu Bank faces actions for its failure in classifying loans and maintaining systems to mitigate loan losses. Himalayan Bank is penalized for inaccurately calculating its capital adequacy ratio. The bank reportedly did not adhere to the central bank's guidelines in deducting certain amounts from the primary capital and understated its risk-weighted assets, leading to a misrepresented higher capital adequacy ratio.


Muktinath Development Bank has been fined one million rupees for non-compliance with NRB's policies and instructions. Additionally, Dr. Anand Prasad Shrestha, director of Garima Development Bank, and Kush Prasad Malli, director of Reliance Finance, have received official warnings for their institutions' regulatory breaches.

Related Stories
POLITICS

Durga Prasai vows to liberate debtors as PM Dahal...

ECONOMY

NRB takes steps to amend banking offenses act and...

ECONOMY

BFIs demand stringent action against attackers

ECONOMY

CBFIN demands action against those involved in ana...

ECONOMY

After commercial banks, NRB now launches probe int...

Trending

Top Videos

Bold Preety willing to fight for her musical career

Awareness among people on heart diseases has improved in Nepal’

Print still remains the numbers of one platform

Bringing home a gold medal is on my bucket

What is Nepal's roadmap to sage child rights