Kathmandu: The Global I.M.E Bank has come under regulatory scrutiny, prompted by the Nepal Rastra Bank (NRB). The bank has been instructed by the Central Bank to refund amounts related to increased premiums without adhering to prescribed interest rates. Despite the Regulatory Department notifying the Global I.M.E Bank about the failure to refund certain customers’ excess amounts, the bank has acknowledged the premium increase without addressing the issue.

According to the NRB’s Unified Directive No. 2/079, the bank has violated regulations related to loan misuse, non-compliance in business operations, ongoing litigations, and failure to meet the D/E Ratio. The Supervision Department of the NRB has specifically cautioned the Chief Executive Officer of Global I.M.E Bank under Section 8(5) of the directive, urging corrective actions.

The actions of Global I.M.E Bank are currently being closely monitored, and a unified directive issued in 2079 has not been fully adhered to. The Supervisory Department’s report recommends caution to the CEO under Section 100(2)(k) of the Banking Act, 2058.

Similarly, Prabhu Bank has received a caution from the NRB for not categorizing loans according to the classification outlined in Unified Directive No. 2/079. The bank is accused of increasing the Risk Premium rate without proper assessment of capital adequacy and providing inaccurate reports, violating Section 100(2)(k) of the Banking Act, 2058.

Moreover, the timely monitoring and evaluation of these actions have been neglected, leading to non-compliance with the directive under Section 6/079, Sub-section 2 of the Operational/Executive Committee’s duties and responsibilities. The report highlights that the CEO and the Executive Committee of the bank were not vigilant in adhering to the guidelines, and caution has been issued to them under Section 100(2)(k) of the Banking Act, 2058.

In a separate development, Himalayan Bank’s CEO, Ashok Rana, has received an official warning from the NRB’s Supervision Department. The warning comes following discrepancies reported in the bank’s adherence to regulatory directives and guidelines issued by the NRB. The Supervision Department’s caution emphasizes the need for Himalayan Bank and its CEO to promptly address and rectify the identified issues, serving as a regulatory reminder for strict compliance with prescribed rules and regulations governing the banking sector in Nepal.