Kathmandu. Nepal Rastra Bank (NRB) has taken action against two commercial banks. According to the central bank, Prime Bank and Kumari Bank have been alerted in the first quarter of the current fiscal year.

According to the NRB, Kumari Bank, during the inspection of Prime Bank, did not classify some loans on the basis of the period of expiry of the loan as per the Clause 1 (b) of the Integrated Directive 2081 issued by the Central Bank. Subpoint No. 9 (1) It has been found that the credit loss provision has not been maintained on the basis of the outstanding period of the loans for certain loans.

The Chief Executive Officer of the bank was alerted as per Section 100 (2) (a) of the Nepal Rastra Bank Act, 2058 after it was found that the risk weight of some loans was not calculated as per the Capital Education Framework 2015 issued by the Nepal Rastra Bank.

Nepal Rastra Bank (NRB) has also issued a warning to Kumari Bank. The Integrated Directive issued by the Rastra Bank 2081 BS. Direction No. Point No. 12-081. Subpoint No. 9 2 (e) (5) “A person, firm, company or corporate entity blacklisted shall not be allowed to carry out any kind of banking transaction except depositing money in its account until it is released from such list.” According to the NRB Act, 2058 (2058), the warning has been issued as per the provision of sub-section 1 (a) of Section 100.