Nepal Rastra Bank (NRB) slapped cash penalties of Rs 153.70 million against nine banks and chief executive officers concerned for breaching the set guideline.
According to the NRB, it took action imposing penalties against the financial institutions and their CEOs after they failed to meet the compliance on providing loans. These financial institutions have been found charging high premium rates while providing credit, not maintaining proper amounts as per rule of the capital adequacy ratio and providing excess loans to a single group.
The central bank slapped a cash penalty of Rs 500,000 against the then CEO of Nepal Credit and Commerce Bank Amrit Charan Shrestha. Likewise, Rastriya Banijya Bank has been fined Rs 1 billion for breaching law related to anti-money laundering.
The then Century Commercial Bank was taken action for breaching compliance of credit-deposit ratio in July and August last year. The central bank slapped Rs 28.40 million against the commercial bank for the charge.
Likewise, Nepal Bank Limited, Global IME Bank, Agriculture Development Bank and Himalayan Bank Limited, among others, faced action from the regulatory body.
