Banking Exam Question - What are the Punishment by NRB In Case of Capital Inadequacy by Banks & Financial Institution? Explain

Introduction - Punishment Regarding Inadequate Capital Adequacy by Nepal Rastra Bank

Capital capital means the sum of primary capital and capital capital. The capital fund will be calculated in the Capital Adequacy Framework (Unified Directive, 2008) Schedule 1.1, issued by the National Bank for the rights of 'A' class's licensed institution. The development banks of the National Level B class will also have to submit the details of the capital fund adequate proportion and the annual details in addition to the existing system in the respective supervision department, according to the instructions mentioned above. In the case of capitalization, banks and financial institutions should present their programs and present themselves on the Nepalese Nation. After studying and analyzing the Nepal National Bank, it may give necessary instructions for capitalization within certain times.

In case of capital insufficient, the Nepal Rastra Bank can take any action as follows:

• Stop blocking new branches,
• The ban on recycled receipt of the Nepalese Nation also,
• The entity licensed entity can also stop the debt,
• To stop accepting new deposits,
• The Nepal Nation Bank will act according to Section 100 of the Act, 2058,
• Alerting or giving written warnings,
• To enable the management committee to take corrective measures,
• Suspension or ending service,
• Providing impairment to the dividend given to the coholder holder,
• Commercial bank or financial institutions can be deposited and to prevent debt deposits,
• To ban the financial business of the organization,
• Banking or suspension of financial institutions