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HomeNewsNRB Has Taken Action Against 14 Commercial Banks For...

NRB Has Taken Action Against 14 Commercial Banks For Disobeying Instructions.

Kathmandu: NRB has taken action against 14 commercial banks till the second quarter of the current fiscal year. The NRB supervision department has stated that the banks have been taken action as per the law for not following the instructions.

Action has been taken against the banks for changing the interest rate on time deposits three months ago, non-compliance with the instructions given by some companies to withhold accounts, keeping the interest rate differential between term deposits and ordinary deposits more than 5 percent.

NRB, which did not take action against any bank in the first quarter of the current fiscal year due to cowardice, has started action only from the second quarter. Accordingly, Prabhu Bank has been fined Rs. 180,430 for not maintaining the mandatory cash ratio and statutory liquidity ratio.

At present, the interest rate published on term deposits collected on the basis of bidding cannot be changed for three months. NRB has taken action against Nepal Bank for changing the interest rate on term deposit three months ago. Nepal Bank has also taken action against Atlas Engineering Construction Company for not following the instructions given to withhold the account. In both cases, the NRB has informed the chief executive officer of the bank to take preliminary action without imposing cash penalty.

NRB has warned the chief executive officers of Rastriya Banijya Bank, Nabil Bank, Himalayan Bank, Nepal SBI, Nepal Bangladesh, NCC, Citizens, Sunrise, Mega and Century Bank for changing interest rate on term of deposits three months ago against the rules.

NRB has taken action against Standard Chartered and NMB Bank for violating the provision that the maximum and minimum interest rates on term deposits and ordinary deposits cannot exceed 5 percent. The chief executive officers of both the institutions have also been alerted about these banks, said NRB.

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