Kathmandu. Nepal Rastra Bank has sanctioned four commercial banks and two development banks.  Rastra Bank has taken action against Prime Commercial Bank, Kumari Bank, Nepal Investment Mega Bank, Lakshmi Sunrise Bank, Lumbini Development Bank and Excel Development Bank.In the third quarter of the year 2080/81, the Supervisory Department of the National Bank took action against the president, director and chief executive officer (CEO) of these banks.

1.Prime Bank issued integrated instructions issued by Rashtra Bank in 2079. According to directive no. 2/079, not classifying loans, not maintaining provisions for loan losses, calculating risk-weighted assets according to the Capital Education Framework 2015, and underestimating the actual value, and in the final comprehensive on-site inspection report prepared based on the unrefined financial statements of the bank for the month of Chaitra 2078 It said that the instructions given to maintain additional loan losses were not followed.

Rastra Bank has given notice to the Chief Executive Officer (CEO) of Prime Commercial Bank in accordance with clause (a) of section 100 sub-section 2 of Nepal Rashtra Bank Act, 2058.

As there is no adequate monitoring by the board of directors regarding the compliance of the prevailing laws and the policies, instructions and regulations issued by this bank, the board of directors of the bank has been alerted in accordance with clause (a) of sub-section 2 of section 100 of the Nepal Rastra Bank Act, 2058.

2. Integrated instructions issued by Kumari Bank 2079, E.Prof. According to directive No. 2/079, it has been found that the loan was not classified, the provision for loan loss was not maintained, the risk weighted assets were calculated lower than the actual amount according to the Capital Education Framework 2015, and the interest subsidy was given contrary to the Integrated Procedures for Subsidized Loans, 2075. .

The Board of Directors and the Chief Executive Officer of Kumari Bank have been alerted in accordance with clause (a) of section 100 sub-section 2 of the Nepal Rastra Bank Act, 2058 (with amendments).

Kumari Bank has decided to pay Rs. 23.3 million as remuneration for 13 months and 16 days for non-performance of the contract agreement to provide salary allowances and facilities to the then Chief Executive Officer, which is contrary to the provisions of the guidance regarding the salary allowances and other facilities of the chief executives of banks/financial institutions issued by the bank. The board of directors has been alerted according to clause (a) of section 100 sub-section 2 of the Nepal Rashtra Bank Act, 2058 (with amendments). As the board of directors was instructed to recover the said amount within 35 days, the said amount has been recovered.

3. The Chief Executive Officer of Nepal Investment Mega Bank has been alerted according to clause (a) of sub-section 2 of Section 100 of the Nepal Rastra Bank Act, 2058 (with amendments).

The promissory note opened by the Kamaladi branch of the bank was confirmed by the Kalimati branch of the bank and the transaction under the promissory note was confirmed by issuing promissory notes from the petitioner company on various dates and the bank purchased a bill of 413.6 million from the beneficiary and showed it as a loan guarantee and repeatedly added the maturity date of the promissory note and made the loan evergreen until the end of Chaitra 2079. It has been found to act contrary to the integrated instructions issued by the National Bank by showing it as a loan.

4. Rajendra Kumar Khetan, the founder shareholder who holds more than 1 percent of Laxmi Sunrise Bank (formerly Laxmi Bank Limited), has transferred 11.44 million of the 120 million loan to Pankaj Jhunjhunwala, the bank's debtor, and used it in his own account, and the interest on the loan was also transferred from his account. It has been found that payment has been made.

Integrated instructions issued by the National Bank to Banks and Financial Institutions, E.P. of 2080. According to sub-section (2) of section 100 of the Nepal Rastra Bank Act, 2058, Rajendra Kumar Khaitan has been fined 10 lakhs as it appears that the provision in clause 8 (b) of the instruction no. 6/80 has been violated.

Laxmi Sunrise Bank (formerly Laxmi Bank) has been transferred to the bank's shareholder's account. Since the bank did not monitor the utilization of the said loan in time, the chief executive officer of the bank involved in the approval of the said loan has been alerted in accordance with sub-section (2) (a) of section 100 of the Nepal Rastra Bank Act, 2058.

5. Consolidated instructions issued by Lumbini Development Bank to 'A', 'B' and 'C' category banks and financial institutions licensed by Rashtra Bank, 2080 E.Pr. Instruction no. In point no. 2 of 19, customer identification and verification is not sufficient in the financial institution and point no. of the same directive. As mentioned in 16, it was found that the system for identifying suspicious transactions and activities has not been fully implemented (it is in a state of partial implementation) and Lumbini Development Bank Limited has been notified under Section 100 of the Nepal Rashtra Bank Act, 2058. 1 (a) and section 99 of the Bank and Financial Institutions Act, 2073, point no. 1 (a) has been alerted.

6. Accel Development Bank has issued consolidated instructions to banks and financial institutions of 'A', 'B' and 'C' categories licensed by Rashtra Bank, 2080. As there is no full compliance with points No. 2 (4) and 2 (8) of 19, Excel Development Bank Ltd. has been charged with point No. 1 (a) of Section 100 of Nepal Rashtra Bank Act, 2058 and Banks and Financial Institutions Act, 2073. Article 99 point no. 1 (a) has been alerted.