Rastra Bank takes action against 3 banks, Kumari and Himalayan Bank fined 20 million

KATHMANDU, Aug 7: The Nepal Rastra Bank has taken action against three commercial banks for doing transactions outside of the Central Bank's policy guidelines and laws.

Prime Commercial Bank, Kumari Bank and Himalayan Bank are among the banks which conducted financial activities against the rules in the last fiscal year 2079/080.

Out of which, Kumari Bank and Himalayan Bank have been fined nearly Rs 20 million by the Central Bank.

Kumari Bank was fined 5 million 963 thousand 694 rupees and 22 paisa for not maintaining the specified credit/deposit ratio (CD ratio) of Magh month.

Similarly, the Himalayan Bank was fined 13 million 947 thousand 28 rupees and 24 paisa for not maintaining the CD ratio of Kartik month.

Prime Commercial Bank, on the other hand, failed to maintain the loan system as per the instructions of the Central Bank, underestimated when calculating risk-weighed assets as per the Capital Accuracy Framework - 2015 and charged interest by increasing the premium rate against the provisions of Licenced No. 15/079.

According to the Central Bank, the Chief Executive Officer (CEO) of the Prime Commercial Bank has been warned for the first time in accordance with Sub-section 2(a) of Section 100 of Nepal Rastra Bank Act, 2058.