Nepal Rastra Bank (NRB) on Sunday decided to release Rs 27.9 million for the depositors of Nepal Development Bank (NDB). On Friday, the Patan Appellate Court directed the NRB to let the depositors withdraw a minimum amount in view of the festive season.
The court ordered the NRB to let the customers withdraw 50 per cent of their deposits, if the deposit is up to Rs 1 lakh. While, the maximum amount that be withdrawn is Rs 2 lakh, which ought to be at least 50 per cent of the deposit. Depositors can withdraw their sum from Tuesday.
The court has directed the NRB as suggested by Investigation Officer T R Upadhyaya, who submitted his report on Wednesday.
Apart from Dashain limited-withdrawal, Upadhayay has also recommended the revival of NDB as the Badri Bhattarai-Nabin Pun group has given bank guarantees equivalent to Rs 340 million -- Rs 240 million and Rs 100 million each. He has also argued that the liquidation of the NDB might hit the economy and encourage capital flight.
The court has also directed the central bank to release the NDB employees' salaries and their Dashain bonus. There are around 30 employees including those in NDB's Pokhara branch office and the head office at Kamaladi of Kathmandu.
Based on the recommendations by Upadhyaya, the court will decide whether to revive the bank or send it into liquidation after Dashain. The recommendation has said that in case of revival, the institutional depositors like Nepal Army and Employment Provident Fund will get their money back in three years.
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