Kathmandu: Nepal Rastra Bank (NRB) has initiated disciplinary actions against six banks and financial institutions for violations of mandatory regulations. The penalized institutions include Global IME Bank, Prabhu Bank, Himalayan Bank, Muktinath Development Bank, Garima Development Bank, and Reliance Finance.
Global IME Bank has been directed to refund customers for allegedly charging premiums exceeding limits set in the Integrated Directive-2079, a breach of NRB’s directives.
Prabhu Bank faces penalties for its failure to classify loans appropriately and maintain systems to mitigate loan losses. Himalayan Bank has been fined for inaccurately calculating its capital adequacy ratio, understating risk-weighted assets, and not adhering to central bank guidelines.
Muktinath Development Bank has received a one-million-rupee fine for non-compliance with NRB policies and instructions. Dr. Anand Prasad Shrestha, director of Garima Development Bank, and Kush Prasad Malli, director of Reliance Finance, have been issued official warnings for regulatory breaches in their respective institutions.
NRB has directed the penalized institutions to refund any amounts collected from customers that contravene established rules.