Nine commercial banks are penalized by the NRB with cash fines totaling Rs. 153.70 million for noncompliance

KATHMANDU: For violating the established guidelines, Nepal Rastra Bank (NRB) fined nine banks and their chief executive officers a total of Rs 153.70 million in cash.

The NRB claims that after financial institutions and their CEOs failed to comply with the rules regarding loan provision, it took action against them. These financial institutions have been exposed for charging exorbitantly high premium rates for credit while also failing to maintain the required capital adequacy ratio amounts and making excessive loans to a single group.

Amrit Charan Shrestha, the then-CEO of Nepal Credit and Commerce Bank, was hit with a cash fine of Rs 500,000 by the central bank. Similar to how Rastriya Banijya Bank, which broke the law regarding anti-money laundering, was fined Rs 1 billion.

In July and August of last year, action was taken against the former Century Commercial Bank for failing to comply with the credit-deposit ratio. The commercial bank received a fine from the central bank for the offense of Rs 28.40 million.

The regulatory body also took action against Nepal Bank Limited, Global IME Bank, Agriculture Development Bank, and Himalayan Bank Limited, among others.