Banking Exam Question - What are the Penalty that Banks and Financial Institutions Violates Nepal Rastra Bank's Rule? Explain

Introduction - Penalty that Banks and Financial Institutions Violates Nepal Rastra Bank's Rule

NRB, the national bank of Nepal, built up in 1956 under the Nepal Rastra Bank Act 1955 is the money related, administrative and supervisory specialist of banks and monetary organizations. The new Nepal Rastra Bank Act 2002 which replaces the past Act has guaranteed operational self-governance and autonomy to the Bank. The bank is occupied with the advancement of budgetary consideration approach inside the country, and is additionally an individual from the Alliance for Financial Inclusion.

The provision of punishment for the following shall be punished according to the National Bank on the bank and the Bank of Bank, which violates the order or instructions issued by the Bank of Nepal, 2058 or the rules or regulations made under the law.

• Writing or alerting in writing,
• To write written order to take corrective measures to the operational committee,
• To terminate the daily repeating error, take corrective measures, issue written orders, except for thought,
• Suspension or termination of the service,
• Ban on dividend distribution work,
• Deposits can be collected and restricted to debt flow,
• Partial or complete ban on banking business,
• Cancel the license to commerce business or financial institutions.