Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has issued a notice to former Chief Executive Officer (CEO) of Narayani Development Bank Ltd, Birendra Rumba, for violating regulatory provisions related to loan disbursement.
According to the fourth quarter supervision report of the fiscal year 2081/82 made public by the Department of Financial Institutions Supervision, the bank has not followed the prescribed limit while issuing loans to the concerned parties.
According to the NRB, the institution had set the loan limit without counting the customers, firms, companies and groups of customers with mutual relations as a single customer in fund-based and non-fund-based transactions. The report also states that the loan was disbursed to a business group in the fiscal year 2081/82 without calculating the limit of the amount less than 10 percent of the primary capital.
Concluding that these actions were against the regulatory provisions, Nepal Rastra Bank (NRB) had warned the then Chief Executive Officer (CEO) Birendra Rumba as per the clause (a) of sub-section (2) of the Nepal Rastra Bank Act, 2058.
