Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against two commercial banks for violating the rules in the first quarter of the current fiscal year.
Issuing a notice today, the central bank has taken action against Kumari Bank and Prime Commercial Bank. For the first time, both banks have been warned by the Rastra Bank.
The Integrated Directive issued by the Rastra Bank 2081 BS. Direction No. Point No. 12/081 Subpoint No. 9 The provision mentioned in Article 2 (e) (5) states that a person, firm, company or corporate body blacklisted shall not be allowed to carry out any banking transaction except depositing money in its account until it is released from such list. However, Kumari Bank has been cautioned as per the provision of Sub-Section 1 (a) of Section 100 of the Rastra Bank Act, 2058 for not complying with the said provision.
Similarly, during the inspection, Prime Commercial Bank issued the Integrated Directive 2081 BS. Direction No. Point No. 2/081. According to Rastra Bank, some loans have not been classified on the basis of the period of expiry of the loan as per 1 (b).
Point No. Subpoint No. 9 (1) The Chief Executive Officer of Prime Commercial Bank has been cautioned pursuant to Section 100 Sub-Section 2 (a) of the Rastra Bank Act, 2058 for not maintaining credit loss provision on the basis of loan outstanding period and for not calculating the risk burden of some loans as per the Capital Education Framework-2015 issued by the Rastra Bank.
