Kathmandu. Nepal Rastra Bank’s Microfinance Institution Supervision Department has taken action against six ‘D’ class microfinance financial institutions and their directors, office bearers and chief executive officers in the fourth quarter of the fiscal year 2082/83. The Nepal Rastra Bank (NRB) issued a public notice on Wednesday and said that action has been taken against six microfinance institutions and their office-bearers.

The Nepal Rastra Bank (NRB) has stated that the minimum capital fund ratio of the institution was only 6.12 percent as of Ashad 2082 BS and the ratio was not in accordance with the regulatory standard.

The Nepal Rastra Bank (NRB) has also directed Dhaulagiri Laghubitta Bittiya Sanstha Limited to take immediate corrective action as per Bylaw 3 (A) of the Bylaw on Prompt Corrective Action, 2074 BS as the company had set the minimum capital fund ratio at 6.38 percent as of Ashad Ashad 2082 BS.

Similarly, Mathrubhumi Laghubitta Bittiya Sanstha Limited has also taken corrective action as per Bylaw 3 (b) of the Bye-law on Prompt Corrective Action of Banks and Financial Institutions, 2074 BS as the minimum capital fund ratio of the institution was only 4.08 percent in Ashad Ashad 2082.

The Nepal Rastra Bank (NRB) has also taken corrective action against NIC Laghubitta Bittiya Sanstha Limited as per Bylaw 3 (a) of the Bylaw on Prompt Corrective Action of BFIs as the minimum capital fund ratio of the institution was only 6.39 percent as of Ashad Ashad 2082 BS.

Nepal Rastra Bank (NRB) has also imposed a fine of Rs 58.38 on Nepal Laghubitta Bittiya Sanstha Limited for failing to maintain its mandatory cash deposit in the month of Chaitra 2082.

Similarly, Sanjivani Laghubitta Bittiya Sanstha Limited has also been fined Rs 713.88, Rs 1,067.40, Rs 1,412.91 and Rs 1,410 for the first, second, third and fourth periods of 2082 months for not maintaining mandatory cash reserves. It has also imposed a fine of Rs 78.