NRB scraps United Dev’s licence

- POST REPORT, Kathmandu

Sep 23, 2014-

NRB has cancelled the licence of United Development Bank based in Jitpur, Bara after the Appellate Court, Hetauda initiated liquidation proceedings against it by appointing a liquidator. The development bank had plunged into a crisis following misappropriation of massive amounts of money by its promoters and directors.

The central bank decided to put United Development Bank into liquidation after seeing no way for it to continue operations considering the scale of its losses. NRB said that its board meeting on September 4 had decided to take away its licence.

Last year, the Appellate Court, Hetauda had sentenced the former chairman, director and manager of United Development Bank to three years in jail each for banking fraud.

Judges Ananda Mohan Bhattarai and Bam Kumar Shrestha handed down the prison terms against former bank chairman Rabindra Bahadur Singh, director Radha Krishna Amatya and manager Rakesh Raj Shrestha.

The court also ruled that Rs 67.5 million be recovered from Singh for losses caused to the bank besides slapping him with a fine of equal amount. Amatya was ordered to pay a fine of Rs 67.5 million too.

Published: 24-09-2014 09:37

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