Feb 8, Kathmandu: In the second quarter of the current financial year, the National Bank has taken action against 9 commercial banks that acted against the law. The National Bank has taken action against those banks for the offenses of not following the instructions of the National Bank regarding asset laundering, providing illegal service facilities to the directors and chief executive officers, increasing the premiums illegally, and not providing the details according to the capital adequacy framework.
Some of the banks involved in the action have been fined, while the presidents, directors, and chief executive officers of some banks have been warned. Among the banks that will be prosecuted, Prabhu, Kumari, Savikko Bank of Kathmandu, and Prime Commercial Bank have been fined Rs 50/50 lakh in cash by the National Bank.
Prithvi Bahadur Shah of Achham, who is in police custody on the charge of transporting suspicious money, his closest person, and the bank have been prosecuted on the charge of violating the directives issued regarding the prevention of money laundering by allowing money to be withdrawn from the bank account held by the organization.
Similarly, the National Bank has warned Nabil Bank that it has opened a new account despite being instructed to freeze the account. The National Bank has alerted the chief executive officer of Machhapuchhre Bank for not reporting the correct details of the capital fund according to the capital adequacy framework.
Similarly, the National Bank has warned Sanima Bank that it provided additional facilities to the then Chief Executive Officer Bhuvan Dahal contrary to the provisions of Act 073 relating to Banks and Financial Institutions.
Similarly, the National Bank has warned the chief executive officers of the then Nepal Investment Bank, Machhapuchhre, and Civil Bank on the charge of collecting more interest from borrowers by increasing premiums contrary to the instructions of the regulatory body. The National Bank has alerted Prabhu Bank for not following the provisions of the loan notification and blacklisting policy.