A statement issued by the central bank has charged that the management of the bank was engaged in selling shares owned by promoters of the bank without approval from NRB, conducting banking activities from Unity Tower as the headquarters of the bank, changing the name of the bank to Unity Rural Development Bank and expanding Unity´s membership among rural women by using bank´s network. [break]
The statement further said that directors and promoters were found engaged in various fraudulent activities of Unity Life International. The NRB has formed a three-member management committee that apart form running day-to-day activities will also exercise the rights and power of board of directors of the bank.
Earlier the government annulled registration of Unity Life International after a government investigation found that the firm was engaged in a number of fraudulent activities. The company had bought 58 percent stake of Paschimanchal Rural Development Bank when it was privatized some years back.
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