Nepal Rastra Bank Penalizes Six Microfinance Institutions for Regulatory Non Compliance

23rd September 2026, Kathmandu

Nepal Rastra Bank has taken supervisory action against six Class D microfinance financial institutions for violating regulatory norms during the fourth quarter of the fiscal year 2082/83.

NRB Penalizes Microfinance Institutions

According to data published by the Microfinance Institution Supervision Department of the central bank, four microfinance entities faced prompt corrective action for failing to maintain the mandatory capital adequacy ratio, while two institutions incurred cash fines for failing to maintain the required Cash Reserve Ratio (CRR).

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Prompt Corrective Action for Capital Adequacy Violations

Nepal Rastra Bank initiated prompt corrective action under the Bylaws Relating to Prompt Corrective Action of Banks and Financial Institutions 2017 against four institutions for underperforming capital thresholds as of mid-July 2082 (Asar end).

• Forward Microfinance Financial Institution Limited (Sunsari): Recorded a primary capital adequacy ratio of 6.12 percent against regulatory requirements.
• Dhaulagiri Microfinance Financial Institution Limited (Baglung): Maintained a capital adequacy ratio of 6.38 percent.
• Mathrubhumi Microfinance Financial Institution Limited (Budhanilkantha, Kathmandu): Registered a capital adequacy ratio of 4.08 percent.
• NIC Asia Microfinance Financial Institution Limited (Banepa): Reported a capital adequacy ratio of 6.39 percent.

Cash Fines Imposed for Cash Reserve Ratio (CRR) Non Compliance

The central bank penalized two microfinance institutions with monetary fines for failing to maintain the stipulated Cash Reserve Ratio within designated deadlines.

• Win Nepal Microfinance Financial Institution Limited (Banepa, Kavrepalanchok): Incurred a first time monetary fine for failing to maintain the required CRR during the month of Chaitra 2082.
• Sanjeevani Microfinance Financial Institution Limited (Tulsipur, Dang): Received cumulative fines for first, second, third, and fourth time violations across multiple months spanning from Chaitra 2082 through Asar 2083.
• Supervisory Enforcement: Nepal Rastra Bank reasserted that continuous supervisory actions and strict enforcement of regulatory guidelines remain essential for maintaining financial discipline and strengthening the microfinance sector.

For More: NRB Penalizes Microfinance Institutions