Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against Kumari Bank Limited and Prime Commercial Bank for not complying with the regulatory directives in the first quarter of the fiscal year 2082/83. The Department of Bank Supervision has warned both the banks for violating various directives.
According to the Nepal Rastra Bank, Kumari Bank has not implemented the provisions related to banking transactions related to individuals, firms, companies or corporate organizations that have been blacklisted. Although the Integrated Directive-2081 issued by the Nepal Rastra Bank (NRB) clearly prohibits the blacklisted individuals or institutions from carrying out banking transactions except depositing money in their bank accounts until they are released from the list, it has not been fully complied with.
According to the NRB, Kumari Bank has been warned as per the sub-section (1) (a) of Section 100 of the Nepal Rastra Bank Act, 2058 BS.
Similarly, Prime Commercial Bank has also not followed the provisions related to loan classification and risk management as per the directive of Nepal Rastra Bank. During the inspection, the NRB concluded that the bank did not classify some loans on the basis of the exceeding period, did not maintain the necessary loan loss provision according to the situation of loan arrears, and did not calculate the risk burden according to the Capital Education Framework-2015.
Based on these weaknesses, the Chief Executive Officer (CEO) of Prime Commercial Bank has been alerted as per Section 100 (2) (a) of the Nepal Rastra Bank Act, 2058.
