Kathmandu, January 18
Nepal Rastra Bank (NRB) has taken action against six development banks and four finance companies for flouting rules.
Issuing a notice today, the central bank has fined 10 banking and financial institutions after they failed to maintain the mandatory cash reserve ratio (CRR), deprived sector loans and credit-to-deposit ratio (CD ratio) during the first quarter of the current financial year.
Corporate Development Bank, Sindhu Development Bank, Narayani Development Bank and Saptakosi Development Bank have been penalised for not maintaining the CD ratio.
These four development banks were unable to maintain the CD ratio twice - in the first month and second month of the current fiscal year.
Likewise, three finance companies have also been prosecuted for not maintaining the CD ratio.
Both Nepal Finance and Janaki Finance failed to maintain CD ratio twice - in mid-July to mid-August, and mid-August to mid-September.
Samriddhi Finance, the third firm to face music, had failed to maintain the ratio in the second month of the fiscal year.
Similarly, two development banks - Salpa Development Bank and Karnali Development Bank - along with one finance company - Progressive Finance - have been fined for not maintaining the CRR in first quarter of the current fiscal year.
Meanwhile, Karnali Development Bank has been further penalised for not being able to disburse enough deprived sector loans.
A version of this article appears in the print on January 19, 2023, of The Himalayan Times.
