Against six banks and financial institutions, the Nepal Rastra Bank (NRB) has taken regulatory action.

Regulatory action is being taken against six banks and financial institutions for violating the rules set forth by the Nepal Rastra Bank (NRB). The banks involved include Global IME Bank, Prabhu Bank, Himalayan Bank, Muktinath Development Bank, Garima Development Bank, and Reliance Finance Limited.

Specific issues and penalties include:

Global IME Bank: Required to refund customers for premiums charged above the allowed rates.

Prabhu Bank: Cautioned for improper loan categorization and not maintaining proper risk management systems.

Himalayan Bank: Penalized for inaccurately calculating the capital adequacy ratio.

Muktinath Development Bank: Fined Rs. 1 million for not conducting necessary audits and maintaining a lower cash reserve ratio than required.

Garima Development Bank: Warned about weak governance and compliance issues.

Reliance Finance: Identified weaknesses in administration, particularly concerning joint and personal account transactions involving the managing director​ (Khabarhub)​​ (Fiscal Nepal)​​ (My Republica)​​ (CEO Tab)​.

These actions underscore NRB’s commitment to maintaining financial integrity and ensuring compliance with established regulations.

The Department of Supervision of Financial Institutions of the Rastra Bank (NRB) has taken disciplinary action against the presidents, directors, and chief executive officers of several development banks and finance companies for violating regulatory directives. The specific actions were taken during the fourth quarter of the fiscal year 2080/81 BS.

Karnali Bikas Bank, Narayani Bikas Bank, Corporate Development Bank, Sindhu Bikas Bank, and Excel Development Bank. Notably, Sindhu Bikas Bank faced action twice, including a serious case where its chairperson was penalized for embezzling Rs 25 million​.

During its inspections, the Department of Supervision of Financial Institutions at the Nepal Rastra Bank (NRB) holds the Chief Executive Director and the Board of Directors accountable for any discrepancies identified by the supervisors. The department may take various actions if specific regulatory requirements are not met.

The Department of Supervision of Financial Institutions at the Nepal Rastra Bank (NRB) has taken action against the Board of Directors and Chief Executive Officer of Corporate Development Bank, Sindhu Bikas Bank, and Excel Development Bank. 

These actions reflect NRB's commitment to enforcing compliance and maintaining the integrity of Nepal's financial sector.

Similar to Sindhu Bikas Bank, whose capital fund ratio of 32.90 percent is insufficient, Rastra Bank has also started quick changes. Based on the bank's cheque, the board of directors had decided to withdraw the shares valued at Rs 25 million.

The organization has suffered a loss as a result of the board of directors' decision to waive the usual interest on loans given to four borrowers on personal deposits, which goes against the interests of investors, depositors, and the public at large.

In a similar vein, Rastra Bank informed the CEOs and board of directors when Best Finance, Progressive Finance, and Reliance Finance presented their financial statements after the deadline and postponed the meeting.