Nepal Rastra Bank Takes Action Against Two Banks for Regulatory Violations

In the first quarter of the current fiscal year, Nepal Rastra Bank (NRB) has taken action against two banks for violating regulations. The penalized banks are Nepal Investment Mega Bank, a commercial bank, and Miteri Development Bank.

Nepal Investment Mega Bank:

• NRB issued a warning to the bank, stating that it failed to exercise adequate caution when opening or managing accounts.

• The action was taken under Section 100, Subsection (1)(a) of the NRB Act, 2058.

Miteri Development Bank:

• Miteri Development Bank was penalized for maintaining an interest rate spread higher than the maximum limit of 4.60% specified in Clause 4 of the Integrated Directive No. 15 issued in Asar 2080.

• As part of the action, NRB has restricted Miteri Bank from expanding its branches and from providing any refinancing facilities, except those directed toward earthquake victims.

This action by NRB sends a strong message emphasizing the importance of regulatory compliance and caution in banking practices.