Proposed BAFIA authorizes NRB to fine BFIs up to Rs 1.5 lakh per day & 10 lakhs for the individual

The proposed Bank And Financial Institutions Act (BAFIA) provides authority to the Nepal Rastra Bank (NRB) to fine Bank and Financial Institutions (BFI) up to Rs. 1.5 lakh/day for violations.

The BAFIA is currently in discussion in the parliament.

If a BFI fail to submit the required document within the stipulated time frame as directed by the NRB, such institutions can be fined as follows:

1. Rs 1 Lakh per day for delay up to one week after the deadline
2. Rs 1.25 Lakh per day up to two week after the deadline
3. 1.5 Lakh per day after two weeks after the deadline

Furthermore, the NRB can fine promoters, shareholders, BoD members, CEO, employee or other individual can be fined up to Rs 10 lakhs depending upon the severity of the violation of the regulations or directives.