Nepal Rastra Bank (NRB) has issued cautions to two ‘A’ class commercial banks for failing to comply with regulatory provisions.
According to the central bank, action has been taken against Kumari Bank Limited (KBL) and Prime Commercial Bank Limited (PCBL) for breaching the NRB’s Unified Directives.
Under the Unified Directives, any individual, firm, company, or corporate entity listed as blacklisted is prohibited from conducting banking transactions—except depositing funds—until they are removed from the blacklist. The NRB cautioned KBL for violating this provision.
Similarly, PCBL received a warning after NRB’s inspection revealed that the bank had not classified loans based on the overdue period as required by regulations. The inspection found that PCBL failed to allocate the mandatory loan loss provisions accordingly. Moreover, the bank had not calculated the risk weights of certain loans in line with the Capital Adequacy Framework 2015 issued by the central bank.
NRB stated that these actions were taken to reinforce compliance and ensure sound banking practices within the financial system.
