Kathmandu. Nepal Rastra Bank (NRB) has issued a written order to the board of directors of Karnali Development Bank Ltd.
According to the second quarter supervision report of the fiscal year 2081/82 made public by the Department of Bank Supervision, both the development banks have been found to have made different types of regulatory weaknesses.
According to the Nepal Rastra Bank, Garima Bikas Bank was found to have issued personal overdraft loans to blacklisted borrowers during an on-site inspection. The bank was warned as per Section 100 (1) (a) of the Nepal Rastra Bank Act, 2058 BS.
Similarly, Karnali Development Bank failed to provide the details related to minimum paid-up capital to the regulator on time and did not comply with the regulatory directives.
Based on this, the NRB has issued a written order to the Board of Directors of Karnali Development Bank to resolve the problem and fully implement the regulatory provision.
Nepal Rastra Bank (NRB) has directed banks and financial institutions (BFIs) to strictly follow the existing laws, directives and the provisions related to good governance.
