chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88D: Power to be Automatically Suspended During the Period of Resolution
1) The power of the Directors, Chief Executive Officer and other lien on the post of the commercial bank or financial institution, which is under the process of resolution, shall be held ipso facto suspended during the period of resolution.
2) Despite whatever has been written in sub-section (1), the Special Administration Team can depute all or any of the Directors, the Chief Executive Officer, and other personnel to the post for work relating to resolution, by releasing the suspension for the sake of carrying out works prescribed by it.
3) The Special Administration Team can dismiss the person at any time who does not abide by the directives given to them for deputation to work, as per sub-section (2), at any time.
4) The person dismissed as per sub-section (3) shall not obtain any remuneration or facility from such a bank or financial institution.

Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88E: Notice and Registration of the Work Relating to Resolution
1) The Special Administration Team shall have to provide every office of the commercial bank or financial institution with a notice along with the following description within two days from the commencement of the works relating to resolution:
(a) Date and time of the work commenced after taking the commercial bank or financial institution concerned under its control,
(b) Description of the revoked authority and responsibility of the previously authorised person, who used to carry out economic transactions of the commercial bank or financial institution concerned, manage it or give directives relating to it.
(c) Method, time and venue for the depositor to present their claim on their deposit remained in the commercial bank or financial institution concerned, and their claim exceeded the insurance and secured amount prescribed,
(d) Method, time and venue to re-obtain their deposit, insured and secured by the depositors, and
(e) Method, time and venue to present his/her claim to be obtained by the secured creditor from the commercial bank or financial institution.
2) The notice, along with the description as per Sub-Section (1), shall have to be published publicly so that the stakeholders of the commercial bank or financial institution concerned can get information. Such notices have to be published in a national daily newspaper by publishing it every week for a period of four weeks.
3) Special Administration Team shall have to send the information relating to the condition of the commercial bank or financial institution that is subjected to the process of resolution, and the change made in authorised person of such commercial bank or financial institution and in his/her authority to the Bank, Company Registrar’s Office, Stock Exchange Market concerned and the institution established to secure deposit as per existing law and other bodies concerned as well.
Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88F: New Balance Sheet to be Prepared
1) The Special Administration Team shall have to prepare a new balance sheet on the following grounds so as to reveal the actual condition of the commercial bank or financial institution that is subject to the process of the resolution as per Section 88A:
(a) On the ground of the net price of the property to be obtained,
(b) By adjusting the price of the liability to be distributed on the ground of priority as per Section 88I,
2) While preparing a new balance sheet as per sub-section (1), the method to determine liability shall be as prescribed.
3) The balance sheet prepared as per sub-section (1) and the detailed account relating to it shall have to be submitted to the Bank as prescribed.

Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88G: Recommendation May be Made for Improving the Financial Condition of the Commercial Bank or Financial Institution
1) If it is seen that negative effect shall be incurred in overall financial stability or system while accomplishing the process of resolution commenced regarding any commercial bank or financial institution as per this Chapter, Special Administration Team shall have to submit the report, along with the steps to be moved in future, by mentioning such description, including the condition of the properties and liability of such institution so as not to let such condition be created.
2) After receiving the report as per sub-section (1), if negative effect is seen to occur in entire financial stability and system while carrying out resolution of such commercial bank or financial institution by the Bank, and if it is seen that financial condition can be improved when the Government of Nepal invests in such commercial bank or financial institution, the Bank shall recommend such description, along with its opinion, before the Government of Nepal.
3) If financial condition of any commercial bank or financial institution is improved after investing by the Government of Nepal in such commercial bank or financial institution upon the recommendation of the Bank as per sub-section (2), the Government of Nepal shall have to recover its invested amount within maximum of five years from the date of improvement by selling to the private sector through bid.
Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88H: Bridge Institution or Unit May be Established
1) If it is seen appropriate to operate work relating to resolution by establishing or fixing a bridge institution or unit as per Section (b) of sub-section (2) of Section 88 C., the Special Administration Team can request the Bank. If such a request seems to be reasonable, the Bank can grant permission to carry out work relating to resolution by establishing or fixing such a bridge institution or unit.
2) It is deemed that the institution or unit established as per sub-section (1) shall have the power, liability, and property of the commercial bank or financial institution concerned and the membership of any payment, clearing or settlement system as well.
3) The shareholders, creditors or any other persons of the institution or unit established as per sub-section (1) shall not have any right on the property or power of the commercial bank or financial institution concerned.
4) The function, duty and power of the bridge institution or unit and remuneration and facilities to be obtained by the lien on the post of such an institution or unit shall be as prescribed by the Bank.
5) None of the following matters shall be needed for the sake of transferring the property and liability of the commercial bank or financial institution concerned into the bridge institution, unit, or any other institution:
(a) Obtaining consent of the creditor or any affiliated party,
(b) Fulfilling the process prescribed by existing law relating to companies and stocks, or
(c) Fulfilling the process prescribed in any contract in which the commercial bank or financial institution is a party.
Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88I: Sequence of Priority of Payment
1) After evaluating the amount received from the sale of the property of the commercial bank or financial institution remained under the process of resolution by depositor, creditor and Special Administration Team, the work of payment and allocation amount for the other people seen to be paid shall have to be done on the ground of priority as follows:
(a) Necessary expenses incurred in the process of resolution, including the expenses spent by the Bank and Special Administration Team for the sake of implementation of the provision of this Act, expenses for the remuneration and facility of the staff, fee of the professional employed for the work regarding this and other related costs,
(b) The amount up to insurance security is held as per existing law, so as not to exceed the limit of the total claimed amount of the depositor or the amount equal to the payment if that has been made for the depositor by the institution established as per law that carries out insurance security,
(c) The deposit remained after payment as per Section (b),
(d) Approved claim of the persons valid as insured creditors as per law.
2) If the amount of approved claims of any grade is insufficient to be paid off while paying as per the sequence of priority mentioned in sub-section (1), the amount shall have to be proportionately distributed to the claimants of the equal grades.
3) While paying the depositors or secured creditors for the claim, payment should be made equally without discriminating on any ground such as nationality, place of domicile or jurisdiction.
4) The approved claims of the secured creditors, who submit their claims on time, shall be paid, with priority given to the first priority, if the amount received from the sale of the property remains in the security cover. The claim that is not covered by such security shall be equal to the claim of other creditors.
5) For the purpose of bearing liability relating to economic compensation that can be incurred as per Sub-Section (4) of Section 88 L., the Special Administration Team shall have to deposit two percent amount out of the amount received from the sale of the property of such a commercial bank or financial institution, by setting up separate accounts.
6) The amount remained after allocating the amount as per sub-section (5) upon paying to the depositors and secured creditors, the tax, charge, fee to be paid and submitted as per existing law shall have to be proportionately distributed by the liquidator appointed as per sub-section (3) of Section 88 O. to the other creditor or approved claimants and shareholders or that commercial bank or financial institution, or the persons having ownership by other ways on the ground of priority prescribed as per existing law.
Nepal Rastra Bank Act, 2058

Section 88J: Effect After Special Administration Team Takes Bank or Financial Institution Under Control

Section 88M: Final Description of the Work Relating to Resolution to be Submitted
1) After Special Administration Team concludes the work relating to resolution, or after the tenure of such Group is over, or within fifteen days of the dissolution of such Group due to any reason, it shall have to submit the report to the Bank, along with the description relating to the work and action accomplished by it and account of profit and loss of the commercial bank or financial institution concerned, source of economic transaction and its utility, after preparing and getting it tested, and including it as well. Necessary recommendations shall be included in such a report regarding the steps to be taken by the Bank in the future in the context of this institution.
2) After the report is received as per sub-section (1), the Bank shall have to make necessary decision, by considering including the recommendation mentioned in such report, on the issue of arranging the operation of management as per Section 88 G or furnishing application to the court for the sake of liquidation of such commercial bank or financial institution as per Section 88O.
Nepal Rastra Bank Act, 2058

Section 88J: Effect After Special Administration Team Takes Bank or Financial Institution Under Control

Section 88N: Exchange of Reciprocal Assistance
1) In the course of moving forward, the process of resolution by any commercial bank or financial institution, upon obtaining the prior approval of the Bank, may involve the Special Administration Team requesting assistance from the relevant body of a foreign country as necessary.
2) By obtaining prior approval of the Bank regarding the process of resolution of any commercial bank or financial institution, the Special Administration Team can help in the act and action being performed in another country or can move forward the necessary action to validate the act and action being performed by authorised body of another country on the ground of reciprocity. Claimants shall have to be treated equally while extending such assistance or validating such act and action.
3) Except on the condition that confidentiality have to be maintained and sensitive data shall have to be protected, the Special Administration Team can exchange information, upon obtaining prior approval of the Bank, with the related body of the foreign country regarding recovery of dues, resolution plan etc. of the commercial bank or financial institution remained under the process of resolution.
4) Regarding the resolution of the commercial bank or financial institution having branch or office in the foreign country as well upon being established in Nepal, or any commercial bank or financial institution having branch or office in Nepal upon being established in foreign country, the Bank and the institution that secures deposit insurance also can coordinate, and exchange help reciprocally.
5) After forging reciprocal agreement by the Bank and the institution that secures deposit insurance regarding the resolution being performed by the related body of the foreign country and its plan, if any information or help is sought regarding any incident or problem affecting regarding the commercial bank or financial institution that has fallen into resolution, they can exchange such information or assistance.
6) If any help is to be obtained from or coordination is to be done with the central bank, commercial bank or financial institution or the institution that secures deposit insurance of foreign country on the ground of reciprocity as per this Section, if such help and coordination is needed from the government level, the Bank shall recommend in front of the Government of Nepal to arrange the necessary management regarding this.
Nepal Rastra Bank Act, 2058

Section 88J: Effect After Special Administration Team Takes Bank or Financial Institution Under Control

Section 88O: Application for Liquidation May be Made
1) If the process of resolution, which was started by the Bank regarding any commercial bank or financial institution is concluded or if the Bank believes in the matter, on the ground of the recommendation furnished by Special Administration Team regarding this or on other grounds as well, before that process is concluded, that such commercial bank or financial institution cannot be properly operated, it can furnish application to the court for the sake of liquidating such commercial bank or financial institution.
2) When the Bank furnishes an application for the sake of liquidation as per sub-section (1), sub-section (3) of Section 10 of Section 13 of the Insolvency Act, 2063 shall not be applied regarding such a commercial bank or financial institution.
3) When the Bank furnishes an application as per sub-section (1), the court can give an order to appoint a liquidator for the sake of the liquidation of such a commercial bank or financial institution.

Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 89: Fiscal Year
The Fiscal year of the Bank shall be as per the Fiscal year of the Government of Nepal.

Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 90: Account System
1) The Bank shall maintain an accurate account of its profit and loss, as per the accounting system, in accordance with the Nepal Accounting Standards.
2) Notwithstanding whatever matter has been written in sub-section (1), international accounting standards shall have to be taken as the basis in the sectors in which the Nepal accounting standard is not involved.

Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 91: Annual Report
1) The Bank shall prepare an annual report for each fiscal year, which should include the balance sheet, profit and loss and the particulars relating to it.
2) The Bank shall submit the annual report referred to in sub-section (1) to the Government of Nepal within four months from the date of completion of each fiscal year.

Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 92: Auditing
1) The Auditor General shall carry out auditing of the accounts of the Bank.
2) The Board may, if it is deemed appropriate, cause the internal auditing of its accounts to be carried out by some external Auditor. While causing such auditing of accounts, it shall cause to be carried out in accordance with the account system of international practice.

Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 93: Submission of Report to Government of Nepal
1) The Bank shall have to submit the following reports to the Government of Nepal within four months from the date of completion of each fiscal year:
(a) Auditing Report,
(b) Report on its activities themselves,
(c) Report on economic and financial position,
2) The Bank shall publish its monthly balance sheet within fifteen days from the date of completion of each month.
Nepal Rastra Bank Act, 2058

Chapter 10 Balance Sheet, Auditing and Report

Section 94: Report on Monetary Policy
The Bank shall publish its report on monetary policy annually for the information of the general public. The said report to be published in such a manner shall contain the following matters:
(a) Comprehensive review and evaluation of the monetary policy introduced and followed by the Bank in the preceding year,
(b) Justification and analysis of the monetary policy that the Bank is going to introduce in the following year.

Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 95: Acts Deemed to be Offences Under this Act
1) Whoever accepts deposits or gives credits or issues debenture or other financial instruments in contravention to this Act or the Rules or bye-law framed thereunder or an order or directive issued thereunder; or whoever charges or gives interest against the policy determined by the Bank or issues fake, fraudulent, counterfeit or duplicate or copied currency or distributes or circulates such currency or is involved in such acts or instead of obtaining license from the Bank as per existing law, if transaction is made without receiving it, or if obstruction is posed on the process of clearing and settlement as per Chapter-9 A., it shall be deemed to have committed offences under this Act.
2) Except otherwise provided under sub-section (1), any person who fails to comply with the provisions made under this Act or rules made thereunder, or bylaws, or the order or directives issued thereunder, shall commit an offence under this Act.

Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 96: Penalty and Punishment
1) The person who commits the crime as per sub-section (1) or (2) of Section 95, shall be fined up to three times the value of the property or imprisoned for up to three years, or both, and the punishment shall be imposed by confiscating the property related to that crime.
2) If there is the condition that the property cannot be fixed while punished as per sub-section (1) or (2) of Section 95, fine up to maximum of one million rupees or imprisonment up to three years, or both the punishments shall be given by looking into the extent of crime.
3) If the crime as per Section 95 is committed by any firm, company or institution, such punishment shall be given to the chief lien on post of such firm, company or institution.
4) The person, firm, company or institution or the lien on the post of such firm, company or institution, who attempts to commit the crime as per Section 95 or accomplices to commit such crime shall get half of the punishment which is given to the principal criminal.

Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 97: Government of Nepal to be Plaintiff
The cases relating to the offences referred to in Section 95 shall be filed by the Government of Nepal as plaintiff, and such cases shall be deemed to have been incorporated in Schedule -1 of the Government Cases Act, 2049 (1992).
Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 98: Bank to Provide Information
In cases where the Bank has information from any source that anyone has committed the offences referred to in Section 95, the Bank shall forward such information in writing to the Government of Nepal or the concerned agency for necessary actions.

Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 99: Fine for Violation of the Bank’s Regulation
1) In case any commercial bank or financial institution licensed under this Act violates an order or directive issued by the Bank under this Act or under the regulations or bylaws framed thereunder, the Bank may fine such commercial bank or financial institution an amount up to the amount related to such violation.
2) In cases where the Bank’s regulation referred to in sub-section (1) has been violated by a Director, official or employee of the commercial bank or financial institution, such fine shall be imposed on the concerned Director, official or employee.
Nepal Rastra Bank Act, 2058

Chapter 11 Offences, Punishment and Proceedings

Section 100: Punishment for Violation of the Bank’s Regulation
1) In case any commercial bank or financial institution licensed by the Bank violates an order or directive issued by the Bank under this Act or under the regulations or bylaws framed thereunder, the Bank may impose one or more of the following punishments on such a commercial bank or financial institution:
(a) Giving a reprimand or a written warning,
(b) Obtain an undertaking from the Board of Directors to adopt reformative measures,
(c) Issuing a written order to end frequent violations, to abstain from such violations and to adopt reformative measures,
(d) Suspend or terminate the services of the Bank’s employees,
(e) Prohibit a commercial bank or financial institution from distributing dividends to its shareholders,
(f) Prohibit commercial banks or financial institutions from accepting deposits or granting loans and advances,
(g) Imposing full or partial restrictions on the transaction of business of the commercial bank or financial institution,
(h) Suspend or revoke the license of the commercial bank or financial institution.
2) Where a Director or official or employee of a licensed commercial bank or financial institution violates an order or directive issued by the Bank under this Act or under the regulation or bye-law framed there under or in cases where, they have acted against the interest of the depositor or general public or where they failed to submit the documents, particulars, data required by the Bank or the inspecting or supervising official within the time prescribed, the Bank may impose the following punishments to such Director, official or employee:-
(a) Giving a reprimand or written admonition,
(b) Suspending,
(c) Imposing a cash fine not exceeding five hundred thousand rupees,
(d) Giving an order to the Board of Directors of the concerned commercial bank or financial institution to stop payment of all benefits, including remuneration and allowances,
(e) Giving an order to the Board of Directors of the concerned commercial bank or financial institution to remove the Director from his office or to terminate the services of an officer or employee.