Bankers, NRB to hold further talks after Supreme Court’s verdict

लगानी न्यूज

२० जेष्ठ २०८३, बुधबार १८:०६June 3, 2026

. After the Supreme Court’s order, the stressed banks are going to hold further discussions with the Nepal Rastra Bank.

Advocate and lawmaker Madhu Kumar Chaulagain has filed a writ petition at the Supreme Court against the Chief Executive Officer and Director of various banks.TAG_OPEN_div_38

He also demanded the implementation of Nepal Rastra Bank Act and Bank and Financial Institutions (BAFIA) Act.TAG_OPEN_div_36 They have also demanded the implementation of the provision barring the CEOs and directors of the banks who have been taken action against as per the Nepal Rastra Bank Act until the completion of 5 years.

In the writ, they have demanded the implementation of Sections 18 and 29 of BAFIA. After the order of the Supreme Court, various organizations in the banking sector have started discussions among themselves.

On Tuesday, the Bankers’ Association called all the CEOs and held a discussion. Association President Santosh Koirala said that the meeting also decided to hold further discussions with Nepal Rastra Bank. According to him, further discussions will be held with the Nepal Rastra Bank.

} The order of punishment issued pursuant to Sub-section (2) of Section 100 of the Defendant Nepal Rastra Bank Act, 2058 would create disqualification as per Section 18 (1) (e) of the Bank and Financial Institutions Act, 2053 even though the writ petitioner has mainly sought the removal of directors and officials of the defendant banks and financial institutions from their posts and it is not necessary to issue an order accordingly. A directive order has been issued in the name of the defendant Nepal Rastra Bank to write to the concerned banks and financial institutions to mandatorily comply with the legal provisions regarding the disqualification of directors and office-bearers of the institution and to carry out effective monitoring of whether or not the company is complied with.

It is said that the Nepal Rastra Bank has been asked to carry out effective monitoring and is preparing to discuss with the Rastra Bank. Nepal Rastra Bank (NRB) has taken action against banks and financial institutions as per Section 1 of the NRB Act. Clause 1 states that if any commercial bank or financial institution obtaining a license from the bank violates this Act or the rules or bylaws framed under this Act or the order or directive issued by the bank thereunder, the bank may impose one or more punishments on such a commercial bank or financial institution.

To issue a warning or written warning in ‘A’ of ‘

1, to make the Board of Directors agree to take corrective steps in ‘B’, to issue a written order to end the repeated violations in ‘C’, to refrain from them and to take corrective steps, to suspend or terminate the services provided by the bank in ‘D’, to prohibit deposits or loans that can be accepted by commercial banks or financial institutions in ‘E’, The government has imposed a partial or complete ban on the transactions of commercial banks or financial institutions and the license of the commercial bank or financial institution will be suspended or canceled.

Banks have now claimed that ‘A’, ‘B’ and ‘C’ should be taken as a warning that action cannot be taken. Bankers believe that in the next 5 years, most of the current CEOs and directors will leave this sector. Bankers have demanded that the Rastra Bank should distinguish between action and caution to prevent the old, experienced bankers from leaving the banking sector.

TAG_OPEN_div_22 Section 18 of the BAFIA deals with the disqualification of the director. Section 18 (d) of the Act states that the regulatory body must not have taken action against the law in accordance with the prevailing law or a period of five years has elapsed since such action was taken. Section 29 (1) (d) of the same Act states that the subject of appointment of the CEO should not be disqualified under sub-section 1 of Section 18.

{{TAG_OPEN_div_20} The bankers are going to discuss with the Nepal Rastra Bank, saying that the decision should be made by the Rastra Bank as the court has directed the Rastra Bank for monitoring. Bankers are demanding that the savings of savers, depositors’ deposits, and the interest of the banking system should be looked after.