. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against the Chief Executive Officer (CEO) of Global IME Bank for violating regulatory directives.TAG_CLOSE_strong_9
According to the second quarter inspection and supervision report of the fiscal year 2080/81 made public by the Department of Bank Supervision, the bank took action against the CEO as per the sub-section (a) of Section 100 (2) of the Nepal Rastra Bank Act, 2058.TAG_OPEN_p_15
TAG_OPEN_p_14 According to the Rastra Bank, the bank has been instructed to return the amount charged extra interest from the customers against the provision of Risk Premium{, but it has not been found that the amount has been returned to some customers.
Similarly, the Rastra Bank has concluded that the re-scheduling and restructuring of borrowers who are operating in business, in the auction process, and who do not meet the Debt-Equity (D/E) Ratio in violation of the criteria related to rescheduling and restructuring has been done without the necessary basis.TAG_OPEN_p_13
The report mentions that even the non-performing (NPA) loans have been rescheduled or restructured and classified as active loans, which is contrary to the unified directive, according to the Rastra Bank.
The Nepal Rastra Bank (TAG_OPEN_p_11 NRB) has directed the banks to immediately rectify such weaknesses, carry out effective monitoring and fully comply with the regulatory provisions.
