Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has slapped a cash fine on Karnali Bikas Bank for violating regulatory provisions.
According to the fourth quarter supervision report of the financial year 2080/81 made public by the Department of Bank Supervision, the bank has not maintained the mandatory cash reserve ratio (CRR) to be maintained as per the regulatory provisions.
According to the NRB, Karnali Bikas Bank had flouted the regulatory directives under the Nepal Rastra Bank Act, 2058 BS and Integrated Directives, 2080 BS. According to the report, action was taken after it was found that the bank had not maintained the minimum cash reserve during the inspection.
On the basis of this weakness, Nepal Rastra Bank (NRB) has issued a loan of Rs. It has been fined Rs 2,246.32.
Nepal Rastra Bank (NRB) has directed all banks and financial institutions (BFIs) to fully comply with the existing laws, integrated directives and regulatory provisions, hinting that further stern action would be taken if the violation of regulatory standards including mandatory cash deposit is repeated.
