NRB Takes Action Against Six Microfinance Institutions

Nepal Rastra Bank (NRB) has taken regulatory action against six Class “D” microfinance financial institutions and their concerned officials during the fourth quarter of Fiscal Year FY 2082/83, citing issues related to capital adequacy and mandatory cash reserve requirements. Four institutions, Forward Microfinance Financial Institution, Dhaulagiri Microfinance Financial Institution, Matri Bhumi Microfinance Financial Institution, and NIC Microfinance Financial Institution were placed under corrective action after failing to maintain the required minimum capital adequacy ratio as of mid-July 2025. Forward Microfinance maintained a ratio of 6.12%, Dhaulagiri 6.38%, Matri Bhumi 4.08%, and NIC Microfinance 6.39%. NRB said the corrective measures were taken under the Bank and Financial Institutions Prompt Corrective Action Bylaw, 2017. Matri Bhumi was subjected to action under a different provision of the bylaw based on the extent of its shortfall. Meanwhile, NRB fined Wean Nepal Microfinance Financial Institution Rs. 58.38 rupees for failing to maintain the mandatory cash reserve in Chaitra 2082, marking its first such violation. Sanjeevani Microfinance Financial Institution was also fined for failing to maintain the required cash reserve for four consecutive months. It was fined Rs. 713.88 for Chaitra 2082, Rs. 1,067.40 for Baisakh 2083, Rs. 1,412.91 for Jestha 2083, and Rs. 1,410.78 for Ashadh 2083, for the first, second, third and fourth violations, respectively.