Nepal Rastra Bank (NRB) has taken regulatory action against officials and institutions of two development banks and one finance company.

According to the details published by the Financial Institution Supervision Department of NRB, Narayani Development Bank, Saptakoshi Development Bank, and Reliance Finance Limited faced action during the fourth quarter of fiscal year 2082/83.

NRB issued a warning to former Chief Executive Officer of Narayani Development Bank, Bishnu Regmi. The central bank stated that action was taken after the bank was found to have violated the single obligor credit limit while issuing loans in fiscal year 2081/82, despite conditions imposed during its removal from the problematic institution list.

The action was taken under Section 100(2)(a) of the Nepal Rastra Bank Act, 2058.

Similarly, Saptakoshi Development Bank’s Chief Executive Officer Dinesh Kumar Pokharel and members of the bank’s board of directors were also warned.

NRB stated that an on-site inspection found serious issues, including misappropriation of cash from the bank’s vault, unauthorized employee access to customer accounts, and weaknesses in the internal control system.

The central bank said the officials were warned because they failed to conduct a detailed investigation, take action against responsible individuals, and implement necessary improvements in internal controls after the incident.

Meanwhile, Reliance Finance Limited was fined for failing to maintain the mandatory cash reserve requirement.

According to NRB, the finance company failed to maintain the required reserve between February 22, 2026, and April 18, 2026, and was fined Rs 2,924.48 according to existing regulations.

NRB continues to monitor financial institutions and take regulatory measures to ensure compliance with banking standards, good governance, and internal control requirements.