Kathmandu. Nepal Rastra Bank (NRB) has taken action against 3 commercial banks for violating the rules.
Nepal Rastra Bank (NRB) has taken action against Rastriya Banijya Bank, Agriculture Development Bank and Prabhu Bank. These banks were awarded in the last fiscal year 2082. According to the NRB, the action was taken in the fourth quarter of 83 years.
What action is taken against which bank?
Rastriya Banijya Bank
According to the central bank, the central bank has violated the directives of the Nepal Rastra Bank (NRB) in violation of the provisions of Regulation 5 (1) of the Bylaws Related to Freezing and Releasing Bank Accounts, 2081. According to the NRB, the Rastriya Banijya Bank has been warned as per the provision made in Section 100 (1) (A) of the Rastra Bank Act, 2058 to freeze the bank account on time as per the provision made in the said bylaw.
Agricultural Development Bank
During the special inspection, the central bank said that the bank violated the directive of the Nepal Rastra Bank (NRB) and the law enforcement body to freeze the bank account. According to the NRB, the NRB has been warned as per the Clause 1÷00 (1) (a) of the Nepal Rastra Bank Act, 2085 (2085) to freeze the bank as soon as the request is received as per the provision related to freezing of bank accounts as per the provisions of the Bank Frozen and Release Byelaws, 2081 (with first amendment).
Prabhu Bank
Earlier, the NRB had warned the Board of Directors of the bank to formulate a plan for improvement and implement the improvement plan to rectify the serious shortcomings seen in the Comprehensive Site Inspection Report, 2081 BS. However, the Board of Directors of the Prabhu Bank has been informed to take corrective steps as per clause (b) of sub-section 1 of Section 100 of the Rastra Bank Act, 2058 (including amendment) as there was no improvement in the expected improvement in the risk-based composite field inspection of Prabhu Bank conducted in 2082 BS on the basis of the raw financial statements of mid-April 2081.
Similarly, the central bank has repeatedly violated the directives issued by the Rastra Bank without following most of the directives given in the past comprehensive site inspection report regarding the loan, most of the deficiencies mentioned in the previous inspection report as per the overall on-site inspection report of the bank, and the Integrated Directive of the Rastra Bank, 2081 issued by the NRB. According to the NRB, the then Chief Executive Officer of the bank, Ashok Sherchan, has been fined Rs 500,000 as per the directive issued by the Rastra Bank for violating the directive issued by the Rastra Bank for not maintaining adequate loan loss provisions without classifying the loans as per Section 2, 2058 (including amendment).
