Nepal Bank director fined for bribery, misconduct

KATHMANDU: Nepal Rastra Bank (NRB) has imposed a fine of Rs 500,000 on Chandrabahadur Adhikari, a director at Nepal Bank, for multiple violations including accepting bribes from loan applicants and misusing bank resources.

According to NRB, Adhikari was found guilty of taking commission (bribes) from borrowers in exchange for facilitating loans at lower interest rates.

The commission money was reportedly deposited into a bank account belonging to his driver.

He has also been accused of misusing official vehicles and breaching the code of conduct expected of a bank director.

A formal letter detailing the disciplinary action has already been sent to Nepal Bank.

“Chandrabahadur Adhikari was found to have acted against the law and violated the discipline expected of a board director. Consequently, a financial penalty of Rs 500,000 has been imposed, and the information has been communicated to the concerned bank,” an NRB source confirmed.

Nepal Bank sources also stated that the letter from NRB has been received and will be presented at the upcoming board meeting.

Based on the board’s decision, further actions—potentially including Adhikari’s dismissal from the director position—may be taken.

Adhikari was appointed as Chair of Nepal Bank for a four-year term in early Ashoj 2080.

However, within months of his appointment, complaints emerged that he was demanding commissions from borrowers even before their loan applications were processed.

“Some applicants had already paid him commissions, but loans were later denied by the bank management despite his recommendations,” the source added.

Dissatisfied borrowers then lodged complaints with Nepal Rastra Bank, prompting an on-site inspection by NRB’s Supervision Department.

The inspection uncovered multiple violations, including unethical conduct and abuse of official resources.

NRB had previously sought an explanation from Adhikari, but after receiving an unsatisfactory response, the central bank’s board decided to take action.

Due to the ongoing investigation by NRB, Adhikari had been unable to attend recent board meetings. As a result, Nepal Bank was unable to conduct its annual general meeting by the end of December 2024.

Following the complaints, Deputy Prime Minister and Finance Minister Bishnu Poudel had already demoted Adhikari from Chair to a regular board member. Thaan Prasad Pangeni currently serves as the acting Chair of the bank’s board.

In addition to NRB’s action, the Commission for the Investigation of Abuse of Authority (CIAA) has also launched an inquiry into Adhikari based on similar complaints.

The CIAA confirmed it had received reports and has begun a formal investigation into the allegations.

Adhikari previously served a four-year term as a board member at the Agricultural Development Bank.

He holds a PhD in Economics and has over 25 years of teaching experience at Tribhuvan University.