Nepal Rastra Bank Takes Action Against Three Financial Institutions for Regulatory Violations

Nepal Rastra Bank (NRB) has taken regulatory action against Narayani Development Bank, Saptakoshi Development Bank, and Reliance Finance after identifying multiple violations of banking regulations during the fourth quarter of fiscal year 2082/83. Narayani Development Bank was found to have breached a lending condition imposed by the central bank after its removal from the list of problematic institutions. The bank exceeded the prescribed limit on loans and credit facilities extended to a single borrower or related group, prompting NRB to issue a formal warning to the bank's then Chief Executive Officer, Bishnu Regmi, directing him to ensure compliance with regulatory requirements in the future. Similarly, Saptakoshi Development Bank was warned over serious weaknesses in its internal control system after an NRB inspection uncovered missing cash from the bank's vault and unauthorized employee access to customer accounts. The central bank noted that the bank's management failed to properly investigate the incidents, take disciplinary action against those responsible, or strengthen internal controls to prevent similar occurrences. Meanwhile, Reliance Finance was fined NPR 2,924.48 for failing to maintain the mandatory cash reserve requirement between February 22 and April 18, 2026 (Phagun 10, 2082 to Baishakh 5, 2083). NRB said the actions were taken to enforce regulatory compliance and strengthen governance across Nepal's banking and financial sector.