Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against Sindhu Bikas Bank and Salapa Bikas Bank for violating regulatory provisions. According to the first quarter supervision report of the fiscal year 2081/82 made public by the Department of Bank Supervision, both the development banks have been found to have made different types of regulatory weaknesses.
According to the NRB, Sindhu Bikas Bank Limited had failed to submit its details of profit and loss on time in contravention of the Bank and Financial Institutions Act, 2073, Company Act, 2063 and Integrated Directive, 2080. Due to this, the annual general meeting of the bank was also delayed, according to the report.
Accordingly, Nepal Rastra Bank (NRB) has cautioned the Chairman of the Board of Directors, Board of Directors and Chief Executive Officer (CEO) of the bank as per Section 100 of Nepal Rastra Bank Act, 2058 BS.
Similarly, Salapa Development Bank Limited has been found to have set the maximum interest spread rate of 4.60 percent as per the Integrated Directive, 2080. According to the report, the bank violated the directive by setting an interest rate difference that exceeded the regulatory limit.
On this basis, the NRB has also cautioned the Board of Directors and Chief Executive Officer of Salapa Development Bank.
KATHMANDU: Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to fully comply with existing laws, regulatory directives and good governance.
