Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against Salapa Development Bank and Narayani Development Bank for violating regulatory provisions. According to the third quarter supervision report of the fiscal year 2081/82 released by the Department of Financial Institutions Supervision, different types of action have been taken against the board of directors of both the banks.
According to the report, Salapa Development Bank has not maintained the minimum paid-up capital required for ‘B’ class financial institutions and has not effectively implemented the directives from Nepal Rastra Bank (NRB) time and again. The central bank has also concluded that the bank has been operating against the regulatory provisions.
Based on this, Nepal Rastra Bank (NRB) has issued a notice to the Board of Directors of the bank as per Section 100 of Nepal Rastra Bank Act, 2058 BS.
Similarly, Narayani Development Bank has not followed the conditions while removing it from the list of troubled institutions. According to the report, the bank has not been able to increase its paid-up capital within the stipulated period, has not complied with the regulatory provisions related to collection of deposits and loan to a single customer.
KATHMANDU: Nepal Rastra Bank (NRB) has issued a written order to the Board of Directors concluding that the bank has violated the directives related to restructuring of the bank’s troubled institutions and other regulatory provisions.
Nepal Rastra Bank (NRB) has directed both the banks to fully comply with the directives and the provisions related to financial discipline and carry out institutional reform works.
