NRB no to directors holding promoter shares
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KATHMANDU, SEP 22 -
Nepal Rastra Bank (NRB) has barred professional directors of banks and financial institutions (BFIs) and their family from holding promoter shares.
In fresh directives on Wednesday, the central bank directed those who are currently holding promoter shares to offload them within this fiscal year.
The central bank also provided a little relaxation to the BFIs to increase lending to the deprived sector. The Monetary Policy had increased the mandatory portion for deprived sector lending by the BFIs by 0.5 percentage point.
Commercial banks, development banks and finance companies have to lend 3.5 per cent, 3 per cent and 2.5 per cent, respectively, to the deprived sector. According to the NRB, BFIs can increase 50 percent of that 0.5 percent by mid-January 2012 and the rest by mid-July 2012. The central bank also cautioned individuals involved in making fake bank balance statements, especially for those going abroad.
The NRB directives said that only BFIs are entitled to issue statements to those who have accounts in them, while those involved in the misdeed will be punished.
Of late, the business of issuing fake balance sheets has flourished with advertisements in newspapers making promises to issue balance statements of millions of rupees for a few thousand rupees.
The central bank also directed BFIs to maintain all security measures like close circuit cameras and others in automated teller machines operated by them.
Posted on: 2011-09-22 09:20
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