Nepal Rastra Bank takes action against two development banks for vault cash misappropriation and violation of loan limit
लगानी न्यूज
Photo: AI
. Nepal Rastra Bank (NRB) has taken action against Narayani Development Bank and Saptakoshi Development Bank for their alleged involvement in the fourth quarter of the fiscal year 2082/83.
According to the Financial Institutions Supervision Department of Nepal Rastra Bank, the Chief Executive Officer (CEO) of both the development banks and the Chairman of the Board of Directors of Saptakoshi Development Bank have been warned in accordance with Section 100 (2) (a) of the Nepal Rastra Bank Act, 2058.TAG_OPEN_div_26
Bishnu Regmi, the then chief executive officer of Narayani Development Bank, has been alerted after the company was found violating the single customer loan limit.TAG_OPEN_div_24
According to the NRB, while removing the problem from the list of problematic institutions, the bank was required to provide loans up to a maximum of 10 percent of the primary capital, including fund-based and non-fund-based facilities, to the same customer, firm, company or mutual customer group.TAG_OPEN_div_22 However, in the fiscal year 2081/82, the then Chief Executive Officer of that period, Bishnu Regmi, was alerted after it was found that the loan was issued against the prescribed limit.
Similarly, the NRB has also taken action against Saptakoshi Development Bank’s Chief Executive Officer Dinesh Kumar Pokharel, Chairman and members of the board of directors for finding serious weaknesses in the internal control system.TAG_OPEN_div_20
During the on-site inspection conducted on the basis of unrefined financial statements of 2082 Asoj 2082, it was found that there was cash misappropriation in the vault of the bank, unauthorized access of the employees to the customer’s account and the internal control system of the bank was weak.TAG_OPEN_div_18
The NRB has also cautioned Chief Executive Officer Dinesh Kumar Pokharel and its Board of Directors with the conclusion that they did not carry out a thorough investigation even after the incident came to light, did not take necessary action against the culprits and did not make necessary amendments in the policy and working procedure to improve the internal control system.TAG_OPEN_div_16
The Nepal TAG_OPEN_div_14 Rastra Bank (NRB), under Section 100 of the Nepal Rastra Bank Act, 2058 BS, has reviewed the regulatory provisions such as loan disbursement to the productive sector, poor class loan, compulsory cash reserve (CRR), loan-deposit ratio, single customer loan limit and other regulatory provisions and warned Saptakoshi as per the need.
प्रतिक्रिया दिनुहोस्