KATHMANDU

The Nepal Rastra Bank has taken action against Goodwill Financial. The central bank has taken action against the financial institution, stating that loans were issued without ensuring the proper use of the loan and loan flow.

During the inspection, the financial institution was found to have given loans without ensuring the security of the loan amount when flowing loans to Mahajan Vision Associates. After finding that loans were issued without ensuring the security of the loan amount, the central bank informed the financial institution that action had been taken.

According to the Nepal Rastra Bank, Goodwill Financial has been taken action against under Section 100 of the Banking Act, 2058, Subsection (2), Clause (k).

Similarly, the central bank has advised the board of directors and the chief executive officer (CEO) of the institution involved in the decision to lend such loans from financial institutions.