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In the second quarter of the current financial year, Nepal Rastra Bank has taken action against the chief executive officers of 15 financial institutions. The National Bank has alerted the Chief Executive Officers of seven development banks and eight finance companies on the charge of misuse of subsidized interest loans.
In the report submitted by the consultant appointed to study the usefulness of re-loan, business continuity loan and subsidized loan, a report has been prepared and submitted to this bank by the related organization regarding the loans that have been misused or suspected to be misused among the loans flowed from those institutions. It is said in the report of Rashtra Bank, "As disclosed in the report, some subsidized loans from institutions are not utilized, so guidance on subsidized loans And as the instructions issued by this bank have been violated, the chief executive officers of 7 development banks have been alerted to the executive heads of those financial institutions in accordance with clause (a) of section 100 of the Nepal Rashtra Bank Act, 2058 CEOs of development banks include Lumbini Development Bank, Mahalakshmi Development Bank, Kamana Seva Development Bank, Muktinath Development Bank, Salpa Development Bank, Garima Development Bank and Saptakosi Development Bank. . Similarly, the CEOs of the finance companies that will be warned are Samriddhi Finance Company, Pokhara Finance, Progressive Finance, ICFC Finance, Janaki Finance Company, Central Finance, Reliance Finance and Goodwill Finance, according to the National Bank.
Similarly, in the second quarter of this financial year, Nepal Rastra Bank has taken action against two development banks and two finance companies. The National Bank has taken action against those institutions for violating the rules.
Garima Bikas Bank, Karnali Development Bank, Pokhara Finance and Central Finance are among those who will suffer this kind of action. According to the National Bank, the Garima Bikas Bank has alerted the blacklisted borrowers after it was found to have provided personal surplus loans. Rashtra Bank alerted the bank after giving loans to blacklisted borrowers during on-site inspection.
The Central Bank has declared the Karnali Development Bank as problematic and now it has taken over the management.
The Board of Directors of Pokhara Finance did not monitor enough by itself or through the committees under it, and the organization has reached a problem-oriented state, so the Rastra Bank alerted the Board of Directors. Nepal Rastra Bank alerted the Board of Directors of Finance because the Board of Directors and other committees under it did not maintain adequate monitoring and the finance has become problem-oriented.
Central Finance has imposed a cash penalty of 9 thousand 106 rupees after not maintaining the mandatory cash balance as specified by the National Bank.
