May 25: Nepal Rastra Bank (NRB) has decided to supervise the activities of all banks and financial institutions (BFI) strictly, to ensure whether the BFIs are following its directives or not.

The central bank issued the Nepal Rastra Bank Monitoring and Supervision Bylaws, 2074 on Wednesday, May 23, to tighten the screw on the BFIs.

According to the bank, it issued the bylaws to inspect, regulate, and take action against BFIs stating that the BFIs have not been following the directives issued by the central bank time and again.

As per the laws, the central bank will take action against those banks not following the directives of its inspection units. Action will be taken based on the report of the inspection teams both offsite and onsite.

Similarly, based on the report of surveillance and inspection, BFIs will also be given a chance for improvement.