KATHMANDU, Nov 30: Nepal Rastra Bank (NRB) has taken action against a number of commercial banks found involved in misconduct in their daily operations.
According to NRB, it slapped cash fines on the Bank of Kathmandu (BoK) and Agriculture Development Bank. BoK has been fined Rs 21.18 million for breaching the rule of minimum threshold in providing loans to the deprived communities. Similarly, Agriculture Development Bank has been slapped a fine of Rs 2 million for breaching the rule of money laundering.
Likewise, the regulator sent caution notes to the executives of Sunrise Bank and Mega Bank Nepal (MBN). These banks were found providing loans to their executives at interest rates lower than their base rates.
The executives of BoK, Prabhu Bank, Kumari Bank and Prime Bank have been accused of carrying out transactions through frozen bank accounts. Likewise, Himalayan Bank, Sunrise Bank, Global Bank and MBN were found to have increased the premium rates in the old loans provided to their clients.