Kathmandu: Nepal Rastra Bank (NRB) has imposed penalties on five development banks and three finance companies for breaching regulatory norms during the last quarter of the fiscal year 2023/24.
The development banks facing sanctions include Karnali Development Bank, Narayani Development Bank, Corporate Development Bank, Sindhu Development Bank, and Excel Development Bank. Similarly, the finance companies penalized are Best Finance, Reliance Finance, and Progressive Finance.
Key actions by NRB include instructing Narayani Development Bank and Sindhu Development Bank to undertake prompt corrective measures due to their failure to comply with the prescribed capital adequacy ratio thresholds. Karnali Development Bank incurred a monetary penalty for non-compliance with the mandatory cash reserve ratio requirements.
Corporate Development Bank, Excel Development Bank, Best Finance, and Reliance Finance were sanctioned for delays in submitting their balance sheets and profit and loss statements to NRB, as well as for tardy public disclosure of their financial statements.
Progressive Finance, on the other hand, faced penalties for its failure to complete external audits and for not holding its annual general meeting for the fiscal year 2021/22 within the stipulated timeframe.
These actions by NRB underscore its commitment to maintaining financial discipline and regulatory compliance within Nepal’s banking and finance sector. The penalties serve as a reminder to financial institutions to uphold transparency, timely reporting, and adherence to regulatory frameworks.