Monday, July 20, 2009

NRB revokes action against financial institutions

Nepal Rastra Bank (NRB) has revoked the action against Nepal CSI Development Bank -- from July 15 -- after it increased its Cash Reserve Ratio (CRR) and injected fresh capital according to the directives of the NRB.

The central bank has imposed ban to collect deposits from August 20, 2006 and issued a slew of directives to improve its financial health. "The central bank has revoked its action against it after the financial health of the CSI Development Bank has improves," said the central bank.

The NRB had directed it to take Prompt Corrective Action on October 17, 2008.Similarly, the NRB has also revoked the action against Arun Finance and Saving after it also increased the minimum capital requirement. The NRB on October 17, 2008 banned it to take deposit and declared a problematic bank under the NRB Act.Similarly, the NRB has also allowed the suspended directors of the Bank of Kathmandu (BoK) to take part in the special annual general meeting (AGM) and file for candidacy for the directors. The special AGM is going to take place on July 22.Earlier, the NRB has suspended the BoK board after the controversial decision of its board to 'call back' Radhesh Pant from the post of managing director.

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