Nepal Rastra Bank imposes disciplinary measures on six financial institutions

KATHMANDU: Nepal Rastra Bank (NRB) has initiated disciplinary actions against six banks and financial institutions for failing to comply with mandatory regulations.

Among the institutions affected are Global IME Bank, Prabhu Bank, Himalayan Bank, Muktinath Development Bank, Garima Development Bank, and Reliance Finance, each facing specific penalties for regulatory breaches.

Prabhu Bank is under scrutiny for its shortcomings in loan classification and risk management systems, while Himalayan Bank faces penalties for inaccurately calculating its capital adequacy ratio.Global IME Bank has been directed by the central bank to refund customers for allegedly charging premiums exceeding limits set in NRB’s directives.

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

NRB’s actions underscore its commitment to ensuring the adherence of financial institutions to established regulations, with penalties imposed to rectify non-compliance and maintain the integrity of the banking sector.

Fiscal Nepal |
Sunday January 28, 2024, 02:25:17 PM |

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