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Liquidation If Not Revival For Poor BFIs

  1 min 13 sec to read

--By TC Correspondent
 
Nepal Rastra Bank (NRB) has give a time period of six months to problematic banks and financial institutions (BFIs) to revive. The banks and financial institutions which have been declared problematic from long time have not been able to revive. So, in such a situation bad messages has gone to the public. 
 
According to NRB officials, though there is a provision of just six months to revive, it has been seen as unpractical. 
 
Thus, NRB has been going to conduct Due Diligence Audit (DDA) of such problematic BFIs. After the arrival of DDA reports of problematic BFIs, NRB is going to provide six months provision period to revive. 
 
Number of problematic BFIs has been increasing day-by-day. If a single or two-three BFIs were seen problematic they can be managed through fast track decision from NRB. But as the number has increased highly the central bank has come with a plan to give deadline of six months to recover the bad loans or inject the capital from promoters. 
 
After these action also the problematic BFIs do not revive, they are taken to the process of liquidation. Till now, Nepal Development Bank, United Bikas Bank and Samjhana Finance has been liquidated.
 

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