Nepal Rastra Bank has penalized four financial institutions over regulatory violations, including Citizens Bank, NIC Asia Bank, Pokhara Finance, and Guheshwari Merchant.
Nepal Rastra Bank (NRB) has taken regulatory action against four financial institutions for various violations of banking norms and directives. The institutions facing action are Citizens Bank International, NIC Asia Bank, Pokhara Finance, and Guheshwari Merchant Banking & Finance.
Citizens Bank International was found to have amended the contract agreement of its Chief Executive Officer in violation of NRB’s guidelines, resulting in an increase in benefits. The bank also ignored internal auditor instructions related to the handling of fast-track loans. In addition, NRB found that the bank had miscalculated interest rate spreads, repaid old loans with new ones, delayed payments against pledged collateral, and demonstrated weak loan loss management practices.
NIC Asia Bank received a formal warning after it was found to have charged borrowers excessive interest and failed to include required disclosures in its loan agreements. The bank was cautioned to correct these practices.
Pokhara Finance faced a financial penalty of over Rs. 32 lakh for failing to maintain the minimum statutory liquidity ratio mandated by NRB. This shortfall in required reserves resulted in a direct monetary fine.
Guheshwari Merchant Banking & Finance was also cautioned by the central bank for amending its employee regulations without securing NRB’s prior approval. Furthermore, the company was found to have violated governance norms in the appointment of its board directors.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
