NRB warns wayward banks of action

Governor of Nepal Rastra Bank (NRB) Dipendra Bahadur Chhetri said the central bank will punish financial institutions flouting its directions.

The NRB has initiated action and inspection against financial institutions disobeying financial discipline, he said talking to journalists in Pokhara this morning.
"We took action against the Nepal Development Bank for refusing to comply with the central bank's directives, though we aware the bank time to time," he said. "Similar action will be taken against those banks violating the NRB's instructions."
While mentioning that the central bank has been allowing banks to resume operation considering the present financial possibility, he said that some financial institutions have been seeking merger and the NRB has been screening them.
"Financial status of most of the banks is satisfactory. But case of some banks is exceptional. So, they are under the supervision of the central bank," he said. Dispelling rumours that some banks will go bankrupt in the near future, the governor urged consumers to stay in no doubt about this.

He, however, expressed sadness over the recent trend of investing in unproductive sectors.

Source: Ekantipur