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

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 22: Grounds for Removal of the Directors from Office
1) The Government of Nepal, through the Council of Ministers, shall remove the Governor, Deputy Governor, and Director on the conditions stipulated under sub-section (5).
Provided that the Government of Nepal shall not deprive the concerned person of a reasonable opportunity to defend himself/herself prior to remove him/her from his/her office.
2) Government of Nepal shall remove the Governor from his office pursuant to sub-section (1), on the recommendation of an inquiry committee constituted under Section 23.
3) When removing a Director or Deputy Governor under subsection (1), the Government of Nepal shall conduct an inquiry by a committee and remove them from office based on the committee’s recommendation.
4) Once the Government of Nepal initiates the process for removing the Governor, Deputy Governor and Director pursuant to sub-section (1), they shall be deemed to have been ipso facto suspended from the office.
5) The Governor, Deputy Governor and Director shall be removed from office on any of the following grounds:-
(a) If one is disqualified to become a Director pursuant to Section 21, or
(b) The lack of capability to implement or cause to implement the functions which the Bank has to carry out in order to achieve the objectives of the Bank under this Act, or
(c) If one has committed any act causing loss and damage to the banking and financial system of the country, or
(d) If one is found to have acted dishonestly or with mala fide intention in any transaction related to the business of the Bank, or
(e) If a professional license is revoked or prohibited from carrying out any profession, rendering the individual disqualified to be engaged in any trade or profession on the ground of gross misconduct, or
(f) If one is absent for more than three consecutive meetings of the Board without a genuine reason,
6) Except on the grounds referred to in sub-section (5), no Governor, Deputy Governor, or Director shall be removed from office.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 23: Constitution, Functions and Duties of Inquiry Committee
(1) Government of Nepal shall, prior to removing the Governor from office under Sub-section (2) of Section 22, constitute an Inquiry Committee consisting of the following, and remove the Governor from Office on the basis of the recommendation of such committee:
(a)
The person designated by the Government of Nepal from amongst the retired Justices of the Supreme Court
Chairperson
(b)
Two persons designated by the Government of Nepal from amongst renowned persons belonging to the economic, monetary, banking, financial, commercial or management sectors
Member
2) The Inquiry Committee may, prior to submitting its recommendation to the Government of Nepal along with its findings, record a statement and conduct an inquiry with the concerned person.
3) The Inquiry Committee may fix its procedure to be followed in connection with the inquiry.
4) The Inquiry Committee shall submit its recommendation along with its findings to the Government of Nepal within one month.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 24: Resignation by Director
The Governor or Deputy Governor may resign from their office by tendering a written resignation to the Government of Nepal.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 25: Public Notification of Governor’s Appointment
The Government of Nepal shall, normally one month prior to the vacancy in the office of the Governor, make an appointment to the office of the Governor in accordance with this Act and issue and transmit a public notice of such appointment.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 26: Fulfilment of Vacant Office
In cases where the offices of the Governor, Deputy Governor, and Director fall vacant before the expiry of their tenure, the Government of Nepal shall appoint an appropriate person to such office for the remaining term of office, pursuant to the provisions made under this Act.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 27: Acting Governor
The Government of Nepal shall designate the Senior Deputy Governor of the Bank as Acting Governor to discharge the functions of the Governor in case where the Governor dies or resigns from office, falls sick, goes on leave or is unable to discharge his/her duties due to any reason.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 28: Meeting of the Board
1) The Governor shall preside over the meeting of the Board.
2) The meeting of the Board shall be held as per the requirements of the Bank.
Provided that the Board meets at least once a month.
3) The Governor shall call the meeting of the Board.
Provided that in case of a written request from three Directors of the Board to call the meeting of the Board, the Governor shall call the meeting of the Board.
4) The Board may establish a separate bylaw regarding the procedures for calling Board meetings, conducting meetings, voting, maintaining minutes, and other related matters.
5) The presence of at least three Directors and the person presiding over the meeting of the Board shall constitute the quorum for the meeting of the Board.
Provided that out of the three Directors present in the meeting, at least one director should be the director appointed under Clause (d) of Section 14.
6) The decision of the majority shall be the decision of the Board. In the event of a tie of votes for and against a resolution, the person presiding over the meeting shall exercise a decisive vote.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 29: Functions, Duties and Powers of the Board
The functions, duties and powers of the Board shall be as follows:
(a) To frame monetary and foreign exchange policies,
(b) To take necessary decisions with regard to the denominations of bank notes and coins, the figures, size, metal, materials for printing notes, and other materials; and to frame appropriate policies with regard to their issue,
(c) To frame necessary policies for causing the supervision and inspection of commercial banks and financial institutions and banking and financial arrangements,
(d) To approve the Rules and Bylaws of the Bank and to frame policies applicable to the operation and management of the Bank,
(e) To frame policies with regard to the appointment, promotion, transfer, dismissal, remuneration, pension, gratuity, provident fund, leave, code of conduct and other terms and conditions relating to the service of the employees of the Bank,
(f) To approve the annual programs and budget of the Bank and the annual auditing of accounts, and to submit its report to the Government of Nepal for information,
(g) To approve the annual report on the activities of the Bank,
(h) To frame necessary policy for the issue of a license to commercial banks and financial institutions, and for revoking such a license,
(i) To approve the limit of the loan to be provided to the Government of Nepal by the Bank,
(j) To fix the amount, limit and terms and conditions of the loan and refinance that the Bank provides to the commercial banks and financial institutions,
(k) To make decisions with regard to the Bank’s membership in international organisations and associations,
(l) To frame policy for the mobilisation and investment of the Bank’s financial resources,
(m) To submit a proposal to the Government of Nepal along with the reasons therefor if it is necessary to amend this Act,
(n) To decide on all other matters, excluding the matters which are within the authority of the Governor under this Act, and
(o) To delegate the powers vested in the Board to the Governor or the subcommittee constituted by the Board, with or without fixing the time limit.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 30: Functions, Duties and Powers of the Governor
1) The functions, duties and powers of the Governor shall be as follows:
(a) To implement the decisions made by the Board,
(b) To operate and manage the Bank,
(c) To systematise the functions to be carried out by the Bank,
(d) To represent and cause to be represented on behalf of the Bank in international organisations and associations,
(e) To implement and cause to implement the policies relating to monetary and foreign exchange matters,
(f) To formulate necessary policy on rates of interest for deposits and loans with commercial banks and financial institutions,
(g) To formulate necessary policies with regard to the rates of interest to be paid by commercial banks and financial institutions on deposits and loans or the rate of interest to be charged by them on deposits and loans,
(h) To formulate necessary policies relating to liquidity to be maintained by commercial banks and financial institutions,
(i) To make necessary arrangements with regard to the basis, amount, methods, conditions and duration of compulsory deposit to be maintained by commercial banks and financial institutions, and its use,
(j) To fix the terms and conditions relating to the adequacy of the capital fund of commercial banks and financial institutions,
(k) To take decisions with regard to the procedures and terms and conditions to be followed while purchasing and selling gold and other precious metals,
(l) To fix the charge on the services to be provided by the Bank,
(m) To decide on opening and closing branch offices and other offices of the Bank as may be necessary,
(n) To establish and close the agency of the Bank,
(o) To make necessary arrangements for the development and operation of the information system of the Bank,
(p) To make necessary arrangements for the supervision of commercial banks and financial institutions,
(q) To decide about the revocation of the license provided to commercial banks and financial institutions,
(r) To take decisions on any other matters subject to the powers delegated by the Board of Directors.
2) The powers to be exercised by the Governor of a Central Bank in accordance with international practice shall be vested in the Governor.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 31: Delegation of powers
The Governor may, in order to conduct the business of the Bank in a smooth manner, delegate authority invested with him/her under this Act to the Deputy Governor or other employees of the Bank.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 32: Prohibition on Vested Personal Interest
1) After an appointment with the office of the Governor, Deputy Governor or Director, we shall, in every six months, disclose, as prescribed to the Board, any direct or indirect commercial interest of himself/himself or his/her family members.
2) Where any resolution involving the personal interest of the Governor, Deputy Governor or Director, shall disclose to the Board about his personal interest in any matter to be discussed in the meeting of the Board, prior to the beginning of discussion on such matters. No such Director shall take part in that meeting.
3) *…..
4) The Governor and Deputy Governor should make public the details of property held in his/her name and in the name of his/her family members within one month from the date of appointment and retirement.
* Deleted by the Second Amendment.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 33: Management Committee
1) There shall be a Management Committee, to remain under the Board, to be chaired by the Governor, in order to conduct the business of the Bank in a smooth manner. The two Deputy Governors shall be other members of the Management Committee, and one senior officer of the Bank designated by the Governor shall act as the member-secretary of the committee.
2) The functions, duties and powers of the Management Committee formed pursuant to sub-section (1) shall be as prescribed.
3) Notwithstanding anything contained in sub-section (1), the Governor may invite any of the officers to take part in the meeting of the Management Committee.
4) The Committee shall, in connection with discharging its functions, evaluate the country’s monetary and financial condition on a periodic basis. For this purpose, the Management Committee shall, at least once in a month, submit a report to the Board on the Bank’s administration and operation, operation of monetary and other regulatory policies, the soundness of the banking system of the country, condition of money, capital and foreign exchange market, implementation of such policies and impact they may have and situation on the banking system, and the significant events.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 34: Audit Committee
*The Board shall constitute an Audit Committee as follows, which will be accountable to the Board: –
(a)
One Director designated by the Board
Coordinator
(b)
One subject expert designated by the Board
Member
(c)
Chief of the Internal Audit Department of the Bank
Member
*Amended by the Second Amendment
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 35: Function, Duties and Powers of the Audit Committee
1) The functions, duties and powers of the Audit Committee shall be as follows: –
(a) To submit its report and recommendations to the Board on accounts, budget and audit procedures and control system of the Bank,
(b) To ascertain whether or not the audit and preparation of periodic balance sheet and other documents of the Bank have been carried out properly,
(c) To supervise the implementation of the appropriate risk management adopted by the Bank,
(d) To audit the managerial and performance of works of the Bank in order to be assured that the prevailing laws applicable to the Bank have been fully complied with,
(e) To frame a bylaw for auditing of the Bank in accordance with the prevailing laws and international auditing standards and to submit it to the Board for approval.
2) The Audit Committee shall, while submitting the report and recommendations to the Board pursuant to Clause (a) of sub-section (1), furnish the information thereof to the Governor.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 36: Employees of the Bank
1) The Board shall appoint necessary employees in order to conduct the business of the Bank in a smooth manner.
2) The terms and conditions, remuneration and other benefits payable to the employees appointed pursuant to sub-section (1) shall be as prescribed.

Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 37: Professional Code of Conduct and Official Responsibility
1) The Governor and Deputy Governor shall, so long in office, fully devote his/her professional service to the Bank. Except as nominated by the Bank, they shall not be entitled to assume any office or accept a job in or render services to anyone else, with or without remuneration.
Provided that this sub-section shall not restrict the rendering of services by assuming any post in any non-profit making organisations such as the Medical Association, the Engineers Association, the Bar Association, the Bankers Association, the Chartered Accountants Association and in any other trade and professional organisation.
2) The Governor, Deputy Governor or Director shall have to provide the highest priority to the interests of the Bank while discharging their official duties.
3) The Governor, Deputy Governor or Director shall not accept, personally or through any person having any commercial, financial relationship with him, any gift or loan in a manner that may cause undue influence of any type in discharging his duties.
Nepal Rastra Bank Act, 2058

Chapter 3 Formation and Functions, Duties and Powers of the Board

Section 38: Confidentiality
1) No Governor, Deputy Governor, Director, employees, Advisor, Auditor, Agent or Representative of the Bank shall be allowed to be engaged in the following acts and activities:
(a) To divulge any published or unpublished confidential information or notice that came to his knowledge while exercising his official duty to any other person, or
(b) To use such information or notice for personal gain.
2) Notwithstanding anything contained in sub-section (1), any published or unpublished information in one’s knowledge may be divulged on the following grounds in the manner prescribed by the Bank:
(a) Providing such information while discharging one’s duties in public, while assisting law enforcement agencies, as per the order of the court or of the authorised officer,
(b) Providing such information, in connection with discharge of his/her duties, to the external Auditor of the Bank and the employees of international financial institutions; and
(c) Providing such information in connection with legal actions for the sake of the Bank’s interests.

Nepal Rastra Bank Act, 2058

Chapter 4 Financial Provisions

Section 39: Capital of the Bank
1) The Capital of the Bank shall be *
five billion rupees
.
2) The Capital of the Bank shall be received from the Government of Nepal, and this Capital shall not be transferred, or any burden of debt be placed upon it.
3) The Government of Nepal may alter the Capital referred to in sub-section (1). The Government of Nepal shall consult with the Bank when altering the Capital.
* Amended by the Second Amendment.

Nepal Rastra Bank Act, 2058

Chapter 4 Financial Provisions

Section 40: Computation of net profit and loss
*1) The Bank shall prepare the account for its profit and loss in each fiscal year.
2) While preparing the account of profit and loss as per sub-section (1), it shall be prepared in accordance with the Nepal Accounting Standard.
3) Notwithstanding whatever has been written in sub-section (2), in connection with the sectors which have not been included in the Nepal accounting standard, the international accounting standard shall have to be taken as a basis.
4) While preparing the account of profit and loss, net profit shall have to be ensured by deducting bad or doubtful debts and cutting depreciation of property upon making adjustments of the profit made by the Bank, loss sustained or yet to be sustained and net valuation profit or loss.
* Amended by the Second Amendment.
Nepal Rastra Bank Act, 2058

Chapter 4 Financial Provisions

Section 41: Allocation of net profit
*1) If the Bank makes a net profit in any fiscal year, allocation and use of such profit shall have to be made as follows:
(a) The amount equal to the revaluation profit from the net profit shall have to be separated and kept in the revaluation reserve fund.
(b) Five percent distributable amount of the net profit remained after separating the amount as per Clause (a), shall have to be kept in monetary liability fund; the amount fixed by the Board so as not to be reduced from ten percent in general reserve fund; five percent amount in financial stability fund and the amount as fixed by the Board shall have to be kept in net accumulated savings fund.
(c) After the amount is appropriated as per Clause (b), the Board shall submit the remaining amount to the Government of Nepal from the rest of the savings.
(d) While allocating the amount in the general reserve fund, an additional amount shall be appropriate to cover up to the capital expenses as well as referred to in the annual budget of the Bank.
2) The amount of the general reserve fund and the accumulated savings fund can be used for the sake of increasing the capital of the Bank as well.
3) Regarding the amount, except what is allocated to the funds as per sub-sections (1) and (2), it shall be as per the provision made in the Rule.
* Amended by the Second Amendment.
Nepal Rastra Bank Act, 2058

Chapter 4 Financial Provisions

Section 42: Allocation of net loss
1) If the loss of the Bank exceeds in comparison to the profit in any fiscal year, the surplus net loss amount shall have to be allocated as follows:
(a) If revaluation profit is also included in the net loss, revaluation profit shall have to be kept in the revaluation reserve fund,
(b) If revaluation loss is also included in the net loss, revaluation loss shall have to be written as a loss in the revaluation reserve fund. If revaluation loss exceeds the amount remaining in the revaluation reserve fund, the surplus loss amount shall be written as a loss in the following fund and account in a sequence of priority:
(1) In the accumulated savings fund, up to the amount deposited in the accumulated savings fund,
(2) In the general reserve fund, if the loss amount remains after the adjustment in the accumulated savings fund as per sub-section (1), and
(3) In the capital account, if the loss amount remains after adjustment in the accumulated savings fund and the general reserve fund as per sub-sections (1) and (2).
(c) The operation, except for the revaluation profit as per Section (A) and revaluation loss as per Section (B), as well as other losses, shall have to be written as a loss in the accumulated savings fund,
(d) If the loss amount is more than the amount remaining as a deposit in the accumulated savings fund, the surplus loss amount shall have to be written in the following fund and account as a loss in a sequence of priority:
(1) In the general reserve fund, up to the amount deposited in the general reserve fund,
(2) In the capital account, if the loss amount remains after the adjustment in the general reserve fund as per sub-section (1),
2) The Government of Nepal shall bear the loss that could not be adjusted while allocating the loss as per sub-section (1).

Nepal Rastra Bank Act, 2058

Chapter 4 Financial Provisions

Section 43: Annual Budget
The Board shall, prior to the beginning of each fiscal year, approve the estimated budget of incomes and expenditures and the programs for the coming fiscal year. The Board may evaluate and amend the approved budget every three months, based on the actual position and matters that can be estimated. Such a budget shall be sent to the Government of Nepal for information.

Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 44: Monetary Policy
The Bank shall have full powers to formulate, implement, and cause to be implemented the monetary policy of Nepal.