Banking News – Nepal Rastra Bank (NRB) has taken regulatory action against state-owned Agricultural Development Bank Limited (ADBL) and Rastriya Banijya Bank Limited (RBBL) for violating provisions related to the freezing and unfreezing of bank accounts during the fourth quarter of the last fiscal year.

According to the central bank, both banks failed to comply with the Bank Account Freeze and Unfreeze Bylaws, 2081 (First Amendment), prompting NRB to issue formal warnings under the Nepal Rastra Bank Act, 2058.

During a special on-site inspection of Agricultural Development Bank, NRB found that the bank failed to freeze customer accounts immediately after receiving requests from the central bank and law enforcement agencies. The delay was deemed a violation of the regulatory provisions governing account freeze procedures.

As a result, NRB has instructed Agricultural Development Bank to ensure that all future requests for freezing or unfreezing bank accounts are executed immediately upon receipt, in full compliance with the applicable regulations.

Similarly, Rastriya Banijya Bank was found to have violated Regulation 5(1) of the Bank Account Freeze and Unfreeze Bylaws, 2081 by failing to comply with the central bank’s directives regarding account freeze procedures.

NRB has formally cautioned Rastriya Banijya Bank and directed it to strictly follow the prescribed regulatory framework and ensure timely implementation of account freeze and unfreeze requests in accordance with the law.

The regulatory actions highlight NRB’s continued focus on strengthening compliance, improving governance, and ensuring that banks promptly execute legally mandated account restrictions requested by regulators and law enforcement authorities.