Banking News – Chief Executive Officer (CEO) of Prabhu Bank, Suman Sharma, is set to be automatically suspended. According to Nepal Rastra Bank, the Board of Directors of the bank and financial institution, exercising the authority given by Section 133 of the Banks and Financial Institutions Act, 2073, with the approval of Nepal Rastra Bank, had prepared the Employee Service Regulations.

Rule 89 of the same regulations, published by Nepal Rastra Bank on its website, contains a provision regarding automatic suspension. It states that if a case is filed under a criminal charge, the person shall be considered automatically suspended. “If a person is detained in a criminal charge showing moral turpitude, the person shall be considered automatically suspended during the period of such detention, and if any state body files a case against any employee under a criminal charge according to prevailing Nepal law, the person shall be considered automatically suspended.”

The regulations state that the suspension of a suspended employee shall automatically end after receiving clearance or punishment. Similarly, if any suspended employee is proven innocent, they shall receive full remuneration as before during the period of suspension, and their suspension period shall be counted in the continuous service period.