Kathmandu. Nepal Rastra Bank (NRB) has been taking action against banks and financial institutions for violating regulatory provisions. The central bank has taken action against many banks and financial institutions for carrying out banking activities in violation of the rules till the third quarter of the current fiscal year (July-April).
Currently, there are 20 commercial banks. Rastra Bank has also taken action against two public sector banks.
#inline_tags_PLACEHOLDER_5##पहिलो Tourtland
नेपाल Investment Mega Bank
Rastra Bank had warned in accordance with Sub-section (1) (a) of Section 100 of the Nepal Rastra Bank Act, 2058, as the bank did not seem to be taking adequate precautions while opening and operating a bank account.
प्रभु Bank##inline_tags_PLACEHOLDER_7#
Prabhu Bank was alerted in accordance with Sub-section (1) (a) of Section 100 of the Nepal Rastra Bank Act, 2058 for not complying with the instructions given by the Rastra Bank to freeze the locker.
#inline_tags_PLACEHOLDER_5##दोस्रो quarterly##inline_tags_PLACEHOLDER_7#
एनआईसी Asia Bank##inline_tags_PLACEHOLDER_7#
1. The bank’s Chief Executive Officer Roshan Kumar Neupane said that the bank has paid more interest than the published interest rate to the directors of NIC Asia Bank, their family members and related institutions, the directors of the bank, their directors, their family members and related institutions have been opened by maintaining the old date in some accounts. Chairman Tulsiram Agrawal, Director Trilok Chandra Agrawal and Director Ram Chandra Sanghai have been advised as per Sub-section 2(a) of Section 100 of the Rastra Bank Act, 2058 (with second amendment).
2. During the on-site inspection of NIC Asia Bank by the Rastra Bank, the bank has not complied with the instructions related to loan classification and credit loss, instructions on capital funds and risk weight, instructions on interest rates and some instructions related to institutional good governance.
- बैंक and Financial Institutions Act, 2073 and the Unified Directive issued by the Rastra Bank to banks and financial institutions not to take any action/decision in a manner that is contrary to the directives issued by the Rastra Bank.
- ब्याजदरसम्बन्धी not to violate the directives of the Rastra Bank and to ensure that the risk burden and capital fund has been maintained in accordance with the Capital ADQC Framework, 2015 issued by the bank, and to provide its report to the Rastra Bank on a regular basis and implement an action plan for its improvement.
- कर्जा classification and loan loss should be made in accordance with the directives of the Rastra Bank and the directives on institutional good governance issued by the Rastra Bank should be fully complied with and an action plan should be prepared and implemented.
प्रभु Bank##inline_tags_PLACEHOLDER_7#
1. The Board of Directors of Prabhu Bank has been alerted in accordance with clause (a) of Sub-section 2 of Section 100 of the Nepal Rastra Bank Act, 2058 as the following various sections of the Banks and Financial Institutions Act, 2073 have not been complied with.
- बैंकको Although the tenure of the general director has expired, the provision of merger and acquisition has been calculated from the date of receipt of the tenure of the director, so it has been found that sub-section (1) of Section 15 of the Banks and Financial Institutions Act, 2073 has not been complied with. The board of directors of the bank has also been directed to remove him from the post of director.
##inline_tags_PLACEHOLDER_37#In accordance with clause (b) of Sub-section (2) of Section 14 of the #बैंक and Financial Institutions Act, 2073, if the post of a director falls vacant before the Annual General Meeting, the appointment of a Director can be made by the Board of Directors until the next Annual General Meeting. ।
During the inspection of the #inline_tags_PLACEHOLDER_37##स्थलगत, there were shortcomings in complying with the instructions issued by this bank and the bank did not appear to be moving forward to improve the shortcomings pointed out in the inspection report in time.
2. Unified Directive issued by The Rastra Bank, 2080. Point No. 2÷080 of Direction No. Sub-point no. 9. (1) The Rastra Bank Act, in order to prevent recurrence of such irregularities in the coming days, has not reduced the amount to be deducted from the primary capital in accordance with the provisions of the Capital Adiquicy Framework, 2015 issued by this bank in relation to the calculation of capital adequacy ratio. Chief Executive Officer of Prabhu Bank was alerted in accordance with clause (a) of Sub-section 2 of Section 100 of 2058.
हिमालयन Bank##inline_tags_PLACEHOLDER_7#
Unified Directive 2080 issued by Rastra Bank No. 2. The Chief Executive Officer of Himalayan Bank has been alerted in accordance with Sub-section 2(a) of Section 100 of the Nepal Rastra Bank Act, 2058 for not complying with the provisions related to loan loss without following the classification period of loan repayment pursuant to Section 1 (b).
#तेस्रो Quarterly##inline_tags_PLACEHOLDER_7#
स्ट्यान्डर्ड Chartered Bank#
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. The bank has been fined Rs 148.52 million.
नेपाल Bank##inline_tags_PLACEHOLDER_7#
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 could not be done on time, and the chief executive officer of Nepal Bank could not be coordinated among the employees at the top 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.
लक्ष्मी Srise Bank##inline_tags_PLACEHOLDER_7#
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 that bank has been operating in the same bank, the amount of daily balance in the current account on different dates is negative and indirect loan facility has been provided in violation of the rules.
(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. ।
कुमारी Bank
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.
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.
