Nepal Rastra Bank (NRB) has stepped up regulatory enforcement against the microfinance sector, taking action against several Class 'D' microfinance institutions, their board members, and a chief executive officer during the third quarter of FY 2082/83.
The central bank imposed prompt corrective measures on five microfinance institutions after they failed to maintain the minimum regulatory capital adequacy ratio. It also issued formal warnings to the boards of two institutions and the CEO of another over governance lapses, including violations of employee service regulations, unauthorized expenditure on vehicle purchases, and improper accounting of loan loss provisions amounting to Rs. 815.5 million.
According to the NRB, the actions were taken to ensure regulatory compliance, strengthen corporate governance, and safeguard the stability of Nepal's microfinance sector.
Published by Nepal Rastra Bank on 2083-3-15
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