Nepal Bangladesh Bank (NBB) has decided to handover Bank management to Nepal Rastra Bank (NRB) following panic withdrawal by its clients.

The Kathmandu Post daily quoted a NRB source as saying that during the day long meeting held at the Central Bank on Saturday, all board members of NBB resigned from their posts en masse, paving the way for the Central Bank to take over the NBB management.

Earlier, the NBB stopped the NRB from taking the bank management through the order of Patan Appellate Court.

The NRB was unable to formally accept the management of the troubled bank even after the Board of Directors resigned from their posts until the Court revoked its decision on the stay order to the central bank.

According to sources, the total cash withdrawal on Thursday and Friday stood at Rs. 1.87 billion after the news about NRB taking the management of NBB was published. Thousands of depositors thronged NBB branches nationwide after reports that NBB board and management misused bank resources putting the depositors’ money amounting to around Rs 13 billion, at risk.

“Once the NRB takes over the management, we will guarantee that customers can withdraw all their money if they desire so,” the paper quoted a high ranking NRB official as saying.

The NRB is planning to send a team of three experts to NBB initially.