Kathmandu. Nepal Rastra Bank (NRB) has issued a warning to the Board of Directors, Chairman of the Board of Directors and Chief Executive Officer (CEO) of Muktinath Bikas Bank Limited.
According to the action details of the second quarter of the fiscal year 2080/81 made public by the Financial Institutions Supervision Department of Nepal Rastra Bank, the bank has been warned under Section 100 of the Nepal Rastra Bank Act, 2058.
According to the NRB, the bank had decided to use the amount deposited in the Customer Protection Fund from the fees collected from the customers of poor class loans against the letter and spirit of the Companies Act, 2063, Customer Protection Fund Operation Procedure, 2077 and the spirit of corporate governance.
According to the NRB, the amount was spent for other purposes which are not related to the collective interest of the borrower customer community and even if the money was returned later, it was not informed with necessary caution.
Nepal Rastra Bank (NRB) has warned the bank’s Board of Directors, Chairman and Chief Executive Officer (CEO) of the bank that such decision could have adverse impact on the interest of depositors and the general public.
