Miteri Development Bank Penalized by Nepal Rastra Bank

Miteri Development Bank has faced action from Nepal Rastra Bank (NRB). The Bank Supervision Department of NRB penalized the bank during the first quarter of the current fiscal year for violating regulatory directives.

The penalty was imposed after the bank failed to maintain the interest rate spread within the prescribed limit. NRB has also cautioned the bank not to repeat such actions in the future.

As per the Integrated Directives 2080, issued by NRB in Ashar 2081, Miteri Bank violated Clause 940 of Directive No. 15, which mandates a maximum interest rate spread of 4.60%.

In response, NRB has imposed restrictions on the bank's branch expansion and prohibited it from offering refinancing facilities, except for those provided to earthquake victims.

NRB has emphasized strict adherence to financial discipline and reminded all banks and financial institutions to comply with regulatory provisions.