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Prompt Corrective Actions - Co
Prompt Corrective Actions - Co
Where the capital adequacy ratio falls by up to 2 percentage points below the
prescribed minimum capital fund
i. Interaction with the senior management of bank/ financial institution on
corrective course of action, and place the matter on record.
ii. Require to submit a capital plan for re-capitalization of the bank.
iii. Prohibition from declaring dividends and bonus shares.
iv. Prohibition from establishing new branches.
v. Set limit on deposit mobilization.
(B)
(C)
(D)
(E)
Where the capital adequacy ratio falls in excess of 8 percentage points below the
prescribed minimum capital fund
i. Actions required under clause (D).
ii. Declare the bank as problem bank and initiate actions under Section 86
of NRB Act.
iii. Initiate action towards cancellation of operating license of the bank/
financial institution or initiate liquidation process if adequate capital is not
attained even after declaration as problem bank.
Other actions under Nepal Rastra Bank Act 2058 and/or Bank and Financial Institutions Act
2063.