Nepal Rastra Bank has penalised the officials of two development banks and fined one finance company for violating various banking regulations.
Nepal Rastra Bank (NRB) has taken action against some officials of development banks and a finance company during fourth quarter of fiscal year 2082/83. According to report published by the Financial Institution Supervision Department, officials of Narayani Development Bank and Saptakoshi Development Bank received warnings, while Reliance Finance was fined.
Action Against Narayani Development Bank
The former Chief Executive Officer (CEO) of Narayani Development Bank, Vishnu Regmi, was cautioned under Section 100, Subsection (2), Clause (a) of the Nepal Rastra Bank Act, 2058. NRB stated that he was penalized because he violated the single customer loan limit when providing loans in the fiscal year 2081/82. This happened against the set conditions when the bank was being removed from troubled list.
Saptakoshi Development Bank Officials Cautioned
Similarly, the CEO of Saptakoshi Development Bank, Dinesh Kumar Pokhrel, along with the Chairman and members of Board of Directors, were also cautioned. During an onsite inspection based on unaudited financial reports of Ashwin end 2082, the central bank found major issues. There was embezzlement of cash inside bank vault, unauthorized access of employees to customer accounts, and serious weaknesses in internal control system.
The central bank cautioned them because they failed to do a detailed investigation to punish the guilty people and did not make necessary improvements in the internal control system even after the incident happened.
Reliance Finance Fined
On finance company side, Reliance Finance Limited was fined for failing to maintain required Cash Reserve Ratio. According to the central bank, Reliance Finance did not maintain the compulsory cash reserve from Falgun 10, 2082 to Baisakh 5, 2083. Therefore, the company is fined Rs. 2,924.48 as per the existing rules.
AI Disclaimer: This article was originally published on https://bajarkochirfar.com. It has been translated with the help of AI. For the best understanding and accurate facts, we recommend reading the original Nepali version.
