KATHMANDU: The Supreme Court today upheld the regulatory authority of the Nepal Rastra Bank over banks and financial institutions.

Issuing the verdict, a three-member special bench, today issued the verdict responding to a writ petition filed by Everest Bank Limited’s chairman Bishnu Krishna Shrestha three years ago.

Stating that since the NRB has regulatory authority, the bench said its circular to not provide more than 15 per cent fixed capital of any bank and financial institution was not illegal.

Challenging the circular issued by the central bank, Shrestha filed the petition stating that it was against Section 79 of the Nepal Rastra Bank Act, 2001.

Scrapping the petition, the bench stated that since the Act has given the authority to the central bank, its power was not extra judicial.