KATHMANDU, Nov 10: Nepal Rastra Bank (NRB) has cautioned two ‘A’ class banks and financial institutions for not abiding by the state rules.
According to the NRB, it has taken action against Kumari Bank Limited (KBL) and Prime Commercial Bank Limited (PCBL) for breaching the unified directives enforced by the central bank.
Revised interest rate corridor system introduced
As per the provisions of the Unified Directives of the NRB, a blacklisted individual, firm, company or corporate body will not be allowed to carry out any banking transaction other than depositing money into their account until they are removed from such a list. The NRB issued a caution against KBL for not complying with the said provision.
Similarly, the NRB has warned PCBL for not classifying loans based on the period overdue, contrary to the instructions of the regulator, during its inspection of the concerned bank. The PCBL was found not allocating the mandatory loan loss provision based on the period overdue in a number of cases. While calculating the risk weight of some loans, it was found that the risk weight was not calculated as per the Capital Adequacy Framework 2015 issued by the central bank.
