Nepal Rastra Bank slaps fines on four Commercial Banks

Nepal Rastra Bank (NRB) has imposed fine to 4 commercial banks and cautioned the chief executive officer (CEO) of a few other commercial banks.

Nepal Rastra Bank (NRB) has taken action against four banks with a cash penalty of Rs 5 million each.

Of them, Prabhu Bank, Kumari Bank, Bank of Kathmandu (BOK) (now merged with Global IME Bank) and Prime Commercial Bank are the bank to be fined.

According to the NRB’s enforcement Action notice published on February 8, the banks are slapped fine  for breaching money laundering regulation and directive.

Further, the chief executive officer of Machhapuchhre Bank is cautioned for not submitting factual detail of capital adequacy. The Sanima Bank is cautioned for showing extra facility provided to the previous chief executive officer which is considered as a breach of 29 (7) of the Bank and Financial Institutions Act 2073. CEOs’ of the previous Nepal Investment Bank (current Nepal Investment Mega Bank), Machhapuchhre Bank and Civil Bank are cautioned against raising premium rate or proceeding scheme that implies per se rise in the discount rate to borrowers.

Similarly, Nabil Bank and Prabhu Bank are cautioned for not implementing the provision of identification of customer complied in the provision related to combat money laundering and counter financing of terrorism of Unified Directives 2078.

Prabhu Bank is cautioned for not to abide by the provision of Loan notice and blacklist.