Banking Exam Question - What are the NRB Directives about Punishment Regarding Non-Compliance of Capital Adequacy by Licensed Institutions? Explain

Introduction - Punishment for not Following Capital Adequacy Related Directives

1. The law enforcement agencies will not be able to follow the instructions regarding the capital adequacy as per the pre-corrective action procedure, 2073.
2. Although the licensed entities have not been able to maintain the minimum capital fund in any period of the financial year, it will not be able to distribute cash dividend and bonus shares on the basis of the minimum capital fund at the end of the same financial year. This system will not be constrained to distribute bonus share declaration / distribution for the approval of this bank on the basis of the minimum capital fund, as stated by the external auditor's certified financial statement in the end of the financial year. Thus, the amount required for tax purposes will be acceptable to declare or distribute cash dividend only.
3. In the period of the period of the fiscal year, if the minimum capital fund is maintained by the authorized financial statements in the end of any financial year, the approval of the annual general meeting from the date of the fiscal year, the correct corrective action was executed by the time before the fiscal year. Will not be able to deliver.