Kathmandu. Nepal Rastra Bank (NRB) has imposed a fine of Rs 148.5 million on Standard Chartered Bank.
The central bank has taken action against Standard Chartered Bank for violating regulatory provisions. The bank has been fined Rs 148.52 million.
Nepal Rastra Bank (NRB) has taken action against five commercial banks, including Standard Chartered Bank, for violating the rules in the third quarter of the current fiscal year. Standard Chartered Bank has imposed a cash penalty for providing less than the minimum percentage of loans required to be disbursed in the specified sector till mid-December of the current fiscal year.
Nepal Rastra Bank (NRB) has taken action against all these banks for the first time in the third quarter. Standard Chartered Bank, Nepal Bank, Laxmi Sunrise Bank, Kumari Bank and Rastriya Banijya Bank have taken action.
#inline_tags_PLACEHOLDER_9##नेपाल Bank#
According to the agreement signed between the Chief Executive Officer of Nepal Bank and the Bank, the bank’s strategic plan, annual budget and program have not been implemented effectively, the budget and program and the strategic plan have not been effectively coordinated, the loan approval and renewal has not been done on time, and the chief executive officer of Nepal Bank Limited has not been able to coordinate among the employees at the higher management level÷ According to Sub-section (2) (a) of Section 100 of the 2058 BS, the Rastra Bank has issued a warning.
Similarly, the then Chairman of the Board of Directors of Nepal Bank Limited. Chandra Bahadur Adhikari has been involved in activities that are of personal benefit by misusing his position and name. Sub÷point No. 1 of Point No. 6÷080. 5. “The Director shall not be allowed to misuse his position and name to engage in any kind of personal activity.” For violating this provision, cash in accordance with sub-section (2) (c) of Section 100 of the Nepal Rastra Bank Act, 2058. Nepal Rastra Bank (NRB) has decided to impose a fine of Rs 500,000.
#inline_tags_PLACEHOLDER_9##लक्ष्मी SreversyBankinline_tags_PLACEHOLDER_11##
The Chief Executive Officer of Laxmi Sunrise Bank Limited has been advised in accordance with clause (a) of Sub-section (2) of Section 100 of the Nepal Rastra Bank Act, 2058 for not complying with the provisions of clause (c) of Sub-section (1) of Section 50 of the Banks and Financial Institutions Act, 2073 and the directives issued by the Nepal Rastra Bank to banks and financial institutions.
a) Any firm having significant ownership or financial interest in the director of the bank, a person holding one percent or more of the paid-up capital, the executive chief or the family members of such person or the managing agent or any firm having the power to nominate a managing agent or director, as provided in clause (c) of sub-section (1) of Section 50 of the Banks and Financial Institutions Act, 2073; If the company or institution is prohibited from providing any kind of loan or facility, then the call account and current account of the founder of the bank has been operating in the same bank, in relation to providing loan facility indirectly in violation of the rules by keeping the daily balance in the current account negative on different dates.
(b) Laxmi Sunrise Bank has provided long-term term loans for loans of current capital nature by misinterpreting the unified directives issued by the Rastra Bank and the provisions of the bank’s loan policy and loan product papers, providing term loans for the purpose of loans of margin nature, personal term loans without managing the risks inherent in the loan in time, and maintaining balancing installments even to large business institutions operating for a long time. In the last years, the installment of the loan has been fixed so that the maximum principal can be recovered, the product papers of the loan with policy provisions have to be approved by the Board of Directors, approved by the CHIEF Executive Officer and the bridge gap loan is converted into term loan after a long time by providing bridge gap loan for the current capital loan.
(c) Sub-section (3) of Section 11 of the Banks and Financial Institutions Act, 2073 and the Integrated Directive, 2080 issued by the Rastra Bank. 2. Point No. 080. In accordance with the provisions of sub-point (c) and (d) of Section 18, Laxmi Sunrise Bank has to take the approval of this bank before pledging the shares in the case of taking a loan for the founder shareholders, while taking a loan from Nepal Investment Mega Bank by pledging the founder shares of Laxmi Sunrise Bank held by a founder shareholder holding more than two percent shares of that bank. ।
#inline_tags_PLACEHOLDER_9##कुमारी Bank##inline_tags_PLACEHOLDER_11#
Unified Directive, 2081 issued by The Rastra Bank. Point No. 2. Micro-monitoring loans pursuant to sub-clause (2) of clause (a) of clause 1 and non-performing loans pursuant to clause (b) have not been classified. The Chief Executive Officer of Kumari Bank has been alerted in accordance with clause (a) of Sub-section (2) of Section 100 of the Nepal Rastra Bank Act, 2058, as it has been found that the minimum loan loss arrangement has not been maintained as per clause (1) of Section 9.
#inline_tags_PLACEHOLDER_9##राष्ट्रिय Commercial Banks
Unified Directive 2080 issued by The Rastra Bank. Direction No.2. Point No. 080. 1 (a) (2) and point no. 9(3) and (4) some loans are not classified in the micro-monitoring category. According to Clause 1 (b), some loans are not classified on the basis of the period exceeding the loan limit. (1) For not maintaining the loan loss arrangement on the basis of the loan outstanding period pursuant to (1), not calculating the risk weight in accordance with the Capital Education Framework, 2015 issued by this bank while calculating the risk weight of some loans, and not fully complying with certain provisions contained in the Current Capital Loan Guidelines, 2079 (Second Amendment) issued by this bank, the Chief Executive Officer of the Rastriya Banijya Bank has been found to have not fully complied with the provisions contained in the Guidelines on Current Capital Loans, 2079 (Second Amendment). The alert has been given pursuant to clause (a) of Sub-section 2 of Section 100 of 2058 BS.
