The Nepal Rastra Bank (NRB) is under scrutiny after the Central Investigation Bureau (CIB) arrested Prabhu Bank CEO Ashok Sherchan and other senior executives for nearly two weeks without involving the banking regulator. The detentions, beginning November 30 and continuing with the arrest of the Head of Remittance on Wednesday, relate to a loan dispute involving former chairman Devi Prakash Bhattchan and Prabhu Management. Unlike previous banking cases, the CIB acted independently without an NRB recommendation. Senior NRB officials warned that the unilateral action could have triggered a bank run and said the regulator’s silence has caused unease in the financial sector.
