Nepal Rastra Bank (NRB) has taken action against several banks and financial institutions (BFIs), penalizing seven for failing to comply with laws and directives.
In the first quarter of the fiscal year 2024/25, the NRB’s Financial Institutions Supervision Department penalized the chairpersons, directors, and chief executive officers of three development banks and four finance companies.
The institutions affected include Sindhu Bikas Bank, Salapa Bikas Bank, Miteri Development Bank, Janaki Finance, Gurkhas Finance, Progressive Finance, and Reliance Finance. Sindhu Bikas Bank and Salapa Bikas Bank received warnings for delays in submitting their financial statements.
Miteri Development Bank was penalized for exceeding the maximum interest rate spread of 4.60 percent, with warnings issued to its board and CEO. Reliance Finance was fined Rs 11,227 for not maintaining the required cash reserve.
Progressive Finance and Janaki Finance faced penalties for similar delays in their financial statement submissions. Additionally, Gurkhas Finance’s directors and CEO were cautioned for conflicts of interest related to client transactions.
The NRB discovered that the former chairperson and directors had been involved in questionable financial transactions with borrowers through accounts held at the institution.
