In response to the involvement of nine banks in large scale
misappropriation of Indian currency, Nepal Rastra Bank (NRB) has banned their
13 branch offices from conducting any Indian currency (IC) transactions. NRB
has barred Birgunj based branches of Nepal Investment Bank, Nepal Bank,
Citizens Bank International, Laxmi Bank, Siddhartha Bank, Everest Bank, Nepal
SBI Bank, NIC Bank and Nepal Bangladesh Bank from undertaking any IC related
transaction for their involvement in IC misappropriation case worth IRs 1.24
billion (Rs 1.98 billion).
"The branches will not be allowed to conduct any IC
transaction till another decision is taken," said NRB spokesperson Bhaskar Mani
Gyanwali. Traders had obtained the amount in Indian currency from the branches
by producing fake import documents, known as customs declaration form. The
banks had failed to verify the authenticity of the documents and had provided
Indian currency to pay for imports that never happened.
Department of Revenue Investigation had found Maha Laxmi
Enterprises, Shyam Galla Store, Laxmi Traders, Rehan Traders, GS Traders,
Maxwell Computers, Digital World and Jay Mata Di International to have used
fake documents to obtain IC by producing 2,341 fake customs declaration forms.
The banks also failed to check the authenticity of the documents and they were
found to be issuing IC without filling the foreign currency exchange forms as
required by regulation.