NRB Takes Action Against Six Microfinance Institutions
Summary
Nepal Rastra Bank has taken action against six Class “D” microfinance institutions over capital adequacy and mandatory cash reserve violations. Four lenders were placed under corrective action, while Wean Nepal Microfinance and Sanjeevani Microfinance were fined for reserve shortfalls.
Key Points
- Nepal Rastra Bank acted against six Class “D” microfinance financial institutions and their officials in the fourth quarter of FY 2082/83.
- Forward Microfinance, Dhaulagiri Microfinance, Matri Bhumi Microfinance and NIC Microfinance were placed under corrective action for failing minimum capital adequacy ratios.
- Wean Nepal Microfinance was fined Rs. 58.38 for failing to maintain the mandatory cash reserve in Chaitra 2082.
- Sanjeevani Microfinance was fined for four consecutive months of cash reserve violations, with penalties ranging from Rs. 713.88 to Rs. 1,412.91.
