Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against two development banks and one finance bank for violating the rules.
The central bank last fiscal year 2082. In the fourth quarter of Q83, the action was taken against those developments and finances. The action has been taken against Narayani Development Bank, Saptakoshi Development Bank and Reliance Finance.
What action is taken against whom?
Narayani Development Bank
According to the conditions laid down while removing the organization from the list of problematic institutions, the organization can provide a single customer loan limit of up to 10 percent of its primary capital, including fund-based loan loans and non-fund-based facilities, to the same customer, firm, company or group of customers with mutual relations. Bishnu Regmi (then Chief Executive Officer) has been warned as per clause (a) of sub-section 2 (a) of Section 100 of the Nepal Rastra Bank Act, 2058 BS to prevent the recurrence of such frauds as the institution was found to have issued loans in violation of the provisions of the Act 82 and was holding the post of Chief Executive Officer at that time.
Saptakoshi Development Bank
}
- During the overall on-site inspection conducted on the basis of the unrefined financial statements of the organization, it was found that there was misappropriation of cash in the vault of the organization and unauthorized access of the employees ÷to the customer’s account. You have been cautioned pursuant to clause (a) of sub-section (2) of Section 100 of the Nepal Rastra Bank Act, 2001 for not being able to make adequate improvements by making necessary amendments.
- During the comprehensive on-site inspection conducted on the basis of the raw financial statements of the organization, it was found that there was misappropriation of cash in the vault of the organization and unauthorized access of the employees to the customer÷’s account. The Chairman and members of the Board of Directors of the Association have been cautioned pursuant to clause (a) of Sub-Section (2) of Section 100 of the Nepal Rastra Bank Act, 2058 BS.
Reliance Finance
}
- The government has imposed a fine of Rs 2,924.48 as per the existing provision for not maintaining the mandatory stock amount for the period from Falgun 10, 2082 to April 5, 2083.
