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

Chapter 5 Monetary Functions and Operation of the Open Market

Section 45: Operation of Open Market Transaction
1) After forging an agreement, the Bank shall operate the open market transaction so as to immediately purchase or sell the debenture issued on behalf of the Government of Nepal or the debenture issued or fixed by the Bank, or to purchase or sell later.
2) While operating open market transactions as per sub-section (1), the Bank can also carry out the work of short-term liquidity management by forging a repurchase agreement or a reverse repurchase agreement upon the security of the debentures of the Government of Nepal or the letter of credit issued by the Bank itself.
3) The Bank can issue other appropriate instruments for the sake of the operation of the open market transaction.

Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 46: Compulsory Deposit of Commercial Banks and Financial Institutions
1) The Bank shall issue directives to the commercial banks and financial institutions to maintain compulsory reserves with the Bank in proportion to the deposits accumulated with them, borrowed funds or other liabilities prescribed by the Bank. It shall be the duty of commercial banks and financial institutions to maintain the compulsory deposit in the Bank as prescribed by the Bank.
2) While computing the compulsory deposit of commercial banks and financial institutions, the Bank shall compute on the basis of the daily average of deposits by prescribing the duration.

Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 47: Failure to Maintain Compulsory Deposit
In cases where any commercial bank or financial institution fails to maintain the compulsory deposit prescribed by the Bank, the Bank shall impose a fine on the bank or financial institution for the period of such failure. While imposing the fine, the amount of fine shall not be more than three times the maximum of the bank rate prescribed by the Bank.

Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 48: Discount Operation
1) The Bank may conduct discount transactions on the following negotiable instruments submitted by commercial banks and financial institutions that maintain their accounts with the Bank:
(a) A promissory note or bill of exchange signed by at least two parties, including a commercial bank, payable in Nepal within six months.
(b) Debt bond issued by the Government of Nepal or the Bank payable within Nepal and within six months from the date of acquisition by the Bank.
2) The discount rates, terms, conditions, and procedures of operating discount transactions shall be as prescribed by the Bank.
Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 49: Loan and Refinance to Commercial Banks and Financial Institutions
1) The Bank may, subject to the terms and conditions prescribed by it, make available loans and refinances to commercial banks and financial institutions for a maximum period of one year against the security of the following assets:
(a) International negotiable instrument referred to in Clause (e) of sub-section (1) of Section 66,
(b) The debt bond issued by the Government of Nepal is payable within Nepal,
(c) The deposits accumulated in the Bank or the gold and precious metals, which the Bank may transact under this Act,
(d) The bill of exchange or the promissory notes referred to in sub-section (1) of Section 48,
(e) Other securities as prescribed.
2) Notwithstanding anything contained in sub-section (1) of the Bank may provide any credit to a commercial bank and financial institution for a maximum period of one year in cases where Government of Nepal has, for the sake of public interest and welfare, deemed it appropriate to provide loan and has requested the Bank therefor and Government of Nepal has given a guarantee of securities of prevailing market rate for such loan or in extraordinary circumstances where the Bank has to work as a lender of the last resort.
3) The credit offered as per sub-section (1) or (2) can be renewed for an additional year upon remaining under the conditions as prescribed.

Nepal Rastra Bank Act, 2058

Chapter 5 Monetary Functions and Operation of the Open Market

Section 50: Discount Rate and Rate of Interest for Refinance
The Bank shall fix the discount rate and the rate of interest for refinance from time to time. The Bank shall publish and transmit the notice of discount rate and interest rate of refinance for the information of all concerned.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 51: Monetary Unit
1) The Rupee shall be the monetary unit of Nepal, and such Rupee shall be divided into one hundred Paisa.
2) The Rupee referred to in sub-section (1) shall be a legal tender within Nepal, and the Government of Nepal shall provide a guarantee for such Rupee.
Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 53: Measurement, Weights and Size of Coins
The banknotes and coins issued by the Bank, having made them legal tender, shall be all acceptable to the extent of the amount of face value for repayment of all types of public or private debts within Nepal.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 54: Measurement, Weights and Size of Coins
The face value, measurement, weight, size and other features of the coins to be issued by the Bank under this Act shall be prescribed by the Board.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 55: Issuance of Currency and Security
Matters relating to the printing of banknotes and the minting of coins, providing security to the unissued banknotes and coins, keeping them in an appropriate manner, and the matter of safekeeping or destroying the old banknotes or coins which are not in circulation, plates and dies shall be as prescribed.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 56: Provisions on Exchange of Currency
The Bank shall, without any fee or charge, change a banknote or coin with legal tender in Nepal with the banknotes or coins of the same denomination or different denominations of equal value.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 57: Soiled or Counterfeit Currency
1) The Bank may withdraw, destroy or replace the soiled currency with another banknote or coin.
2) Notwithstanding anything contained in sub-section (1), the Bank may deny replacing the banknote or coin the design of which has been deleted, or which is torn, defaced, or more than fifty percent of its portion has been destroyed.
3) The Bank may withdraw or destroy such banknotes or coins, with or without compensation to the owner of the banknotes or coins referred to in sub-section (1).
4) No owner of the lost or stolen banknotes or coins shall be entitled to a reimbursement from the Bank. The Bank may forfeit without any compensation, the coins or notes the outer appearance of which are changed, or which are counterfeit coins or fake notes.
Explanation: For the purpose of this Section, “Counterfeit coin” means a duplicate coin minted copying the coin issued by the Bank or a counterfeit coin or prepared by melting or manipulating or a coin prepared by cutting and breaking into two or more places a coin issued by the Bank or the coin the figures, letters and signs in which have been defaced.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 58: Provisions Relating to Currency Inventory and Issuance of Currency
The Bank shall carry out the functions related to currency stock and currency issuance, regularly supplying banknotes or coins to meet the demand for the currency.
Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 59: Account of Issued Currency
The Bank shall maintain an account of the entire banknotes in circulation, showing them separately as a monetary liability. Such liability shall not include banknotes in stock or not in circulation.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 60: Currency Recall or Withdrawal
1) The Bank may recall the bank notes and coins in circulation within Nepal by issuing in exchange for other bank notes and coins in an equivalent amount. The Bank shall publish and transmit pubic notice clearly specifying the period during which the bank notes or coins must be presented for exchange and where they are to be so presented.
2) Notwithstanding anything contained in Section 53, upon expiry of the time prescribed pursuant to sub-section (1), bank notes and coins to be exchanged shall cease to be legal tender.
3) The Bank may cut, break, demolish or destroy in any manner whatsoever, the banknotes and coins withdrawn from circulation and the currency with defects, as prescribed.

Nepal Rastra Bank Act, 2058

Chapter 6 Monetary Unit, Banknotes and Coins

Section 61: Reproduction and Counterfeiting of Currency
1) No one shall commit or cause to commit any of the following acts:
(a) To forge, counterfeit or alter banknotes and coin in circulation as legal tender in Nepal or any cheques or payment cards or to do any other act relating to it or to assist in any of such acts,
(b) To possess, transport or issue any banknote or coin or cheque or payment card with the knowledge that such banknote or coin, cheque or payment card was falsely made, forged, counterfeited or altered or to assist in such acts in any manner,
(c) To possess, transport any sheet of metal, stone, paper, die or any other material or substance with the knowledge that it was destined to be used in falsely making, forging, counterfeiting or altering any banknote or coin, cheque or payment card or to assist in any of such acts.
2) Any reproduction of banknotes, coins, checks, securities or payment cards, denominated in Rupee, and the creation of any object that by their design imitates any such banknote, coin, check, security or payment card, require the prior written authorisation of the Bank.
3) The Bank may take appropriate action to prevent the issue of fake notes, counterfeit currency, duplicate cheques, or payments. The Bank may issue necessary orders, directives or notices while taking such actions.

Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 62: Foreign Exchange Policy
The Bank shall have full authority to formulate, implement, and cause to be implemented the foreign exchange policy of Nepal.
Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 63: Management of Foreign Exchange
The Bank shall manage the foreign exchange. The Bank shall have the following powers for such management:
(a) To issue a license under this Act or any other prevailing laws to the people willing to deal with foreign exchange transactions,
(b) To frame Rules and bylaws and to issue necessary orders, directives or circulars in order to regulate dealings in the foreign exchange transaction by the foreign exchange dealer,
(c) To inspect, supervise and monitor the foreign exchange dealer,
(d) To set the bases, limitations and terms and conditions for the transaction of the foreign exchange dealer, and
(e) To prescribe the system of determining the foreign exchange rates of the Nepalese currency.

Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 64: Particulars of Foreign Exchange Transactions
1) The Bank shall cause the license-holder to submit to the Bank the detailed particulars of the exchange of foreign currency and the transaction relating to it. The duration for submitting such particulars, the format and other documents relating to it shall be as prescribed by the Bank from time to time.
2) It shall be the duty of the license holder concerned to submit the particulars referred to in sub-section (1) and the documents prescribed by the Bank.

Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 65: Dealing in Foreign Exchanges
1) The Bank may purchase and sell foreign exchange, gold and precious metals.
2) The purchase and sale to be made by the Bank under sub-section (1) shall be effected through the spot, advanced exchange rate, swap, option or similar types of other instruments, cash or negotiable instruments.
3) The Bank may, for the purpose of sub-section (1) of Section 66, purchase or sell foreign exchange. It may also affect purchases and sales based on spot, forward, or similar exchange rates, as well as swaps, options, or other types of instruments.
4) The Bank shall deal in foreign exchange after fixing its buying and selling rates. The basis, limitations and conditions of such dealing shall be as prescribed by the Bank.
Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 66: Foreign Exchange Reserve
1) The Bank shall mobilise the foreign exchange reserves. Such reserve shall be denominated in the respective foreign exchange, and such reserve shall consist of the following assets:
(a) Gold and other precious metals held by or for the account of the Bank,
(b) Foreign currencies held by or for the account of the Bank,
(c) Foreign currencies held in the accounts of the Bank on the books of a foreign central bank or other foreign banks,
(d) Special drawing rights (SDR) held by the Bank at the International Monetary Fund,
(e) Bill of exchange, promissory note, certificate of deposit, bonds, and other debt instruments payable in convertible foreign currencies issued by any debtor or liability holder and held by the Bank,
(f) Any forward purchase or repurchase agreements of the Bank concluded with or guaranteed by foreign central banks or public international financial institutions, and any futures and option contracts of the Bank providing for payment in freely convertible foreign currency.
2) While selecting the assets referred to in sub-section (1), due consideration should be given to the Bank’s capital and liquidity to maximise earnings.
3) The Bank shall maintain an international reserve at a level which shall be adequate for the execution of monetary and exchange rate policies and for the prompt settlement of global transactions.
4) If international reserves have declined or, in the opinion of Bank, are in danger of declining to such an extent as to jeopardise the execution of the monetary or exchange rate policies in the prompt settlement of the country’s international transactions, the Bank shall submit to Government of Nepal a report on the international reserves position and the causes which have led or may lead to such a decline, together with such recommendations as it considers necessary to remedy the situation.
5) Until such time as the situation referred to in sub-section (4) has been rectified, the Bank shall make further such report and recommendations to the Government of Nepal.
6) The Bank shall hold the foreign exchange reserve referred to in sub-section (1) on its balance sheet.

Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 67: Issuance of Debt Bond Against Gold and Foreign Currency
1) The Bank may, having obtained approval from the Government of Nepal, issue one or more types of debt bonds denominated in gold or foreign currency for a certain purpose.
2) The types, duration, payment of principal and interest and other matters of the debt bond to be issued pursuant to sub-section (1) shall be as prescribed by the Bank.
Nepal Rastra Bank Act, 2058

Chapter 7 Foreign Exchange Policy, Regulation and Reserve

Section 68: International Clearing and Payment Agreements
The Bank may, either for its own account or for the government’s account and at the order of the Government of Nepal, enter into clearing and payment agreements with public or private central clearing unions domiciled abroad. The Bank may, in order to implement the objectives of such an agreement, enter into other necessary agreements.

Nepal Rastra Bank Act, 2058

Chapter 8 Relation with Government of Nepal

Section 69: Banker, Advisor and Financial Agent
1) The Bank shall be the banker and financial advisor to the Government of Nepal and a financial agent of Nepal.
2) The Government of Nepal shall consult the Bank on any matters that are within the jurisdiction of its competence. It shall be the duty of the Bank to advise on matters consulted by the Government of Nepal.
3) Government of Nepal shall, while preparing the annual budget, consult the Bank on the domestic debt, including overdrafts.
4) The Bank shall submit an annual pre-budget review report to the Government of Nepal on economic and financial matters.

Nepal Rastra Bank Act, 2058

Chapter 8 Relation with Government of Nepal

Section 70: Consultation and Information Relating to External Debt
1) The Government of Nepal may consult the Bank while taking a loan from external sectors.
2) The consultation referred to in sub-section (1) shall include the subjects such as the amount of loan, the terms and conditions of the loan and the repayment of the loan.
3) The Government of Nepal shall inform the Bank when external loans have been received.
4) The Government of Nepal shall consult the Bank while granting approval to private and public institutions to raise loan-creating liability in foreign exchange.
5) The Government of Nepal, a public institution or the private sector shall inform the Bank about the agreements concluded that create liability in foreign exchange.

Nepal Rastra Bank Act, 2058

Chapter 8 Relation with Government of Nepal

Section 71: Deposit Collection
1) The Bank shall accept the deposits of the Government of Nepal or other bodies prescribed by the Government of Nepal.
2) While accepting deposits pursuant to sub-section (1), the Bank shall receive and disburse monies, keep accounts therein, and provide banking services related thereto.
3) The Bank may authorise commercial banks and other financial institutions to conduct the transaction as referred to in sub-section (2), subject to the terms and conditions prescribed by the Bank.

Nepal Rastra Bank Act, 2058

Section 72: Functions of Fiscal Agent

Section 73: Bank may ask for Particulars, Statistics and Documents
1) The Bank may ask for the particulars, statistics and documents necessary for the conduct of its business from the concerned bodies.
2) It shall be the duty of the concerned bodies to provide the Bank with the particulars, statistics and documents asked for under sub-section (1).
Nepal Rastra Bank Act, 2058

Section 72: Functions of Fiscal Agent

Section 74: Consultation on the Matter of Law Reform
1) The Bank may be consulted on any proposals by the concerned entities for legislation with respect to matters that relate to Bank objectives or that otherwise are within its fields of competence, including monetary policy and its operations, credit, the balance of payments, foreign exchange, and banking, before they are submitted for amendment or legislative action.
2) It shall be the duty of the Bank to provide the opinion sought pursuant to sub-section (1).
3) The Bank shall have the power to submit proposals to the Government of Nepal for enacting new laws or amending existing laws on subjects related to the Bank’s objectives or areas of competence, such as monetary policies and operations, credit, balance of payments, foreign exchange, and banking.
Nepal Rastra Bank Act, 2058

Section 72: Functions of Fiscal Agent

Section 75: Credit to the Government of Nepal and Purchase of Government Debt Bonds
1) Except otherwise provided in this Act, the Bank shall not provide any financial assistance to the Government of Nepal or an institution under the full, substantial or partial ownership of the Government of Nepal.
2) Subject to the limits specified in this Section, the Bank may extend credit to the Government of Nepal with a condition to repay within one hundred eighty days.
3) Notwithstanding anything contained in sub-section (2), the Bank may extend a special long-term credit to the Government of Nepal only on account of subscription and similar payments resulting from or incidental to the membership of Nepal with an international organisation.
4) The Bank shall disburse credit to be extended to the Government of Nepal or an institution under full or substantial or partial ownership of the Government of Nepal only in Nepalese rupees. Such credit shall be certified by a negotiable debt bond issued by the Government of Nepal and delivered to the Bank. Such debt security should have a maturity corresponding to the maturity of the extended credit and should bear interest at the market rate. There must be a written agreement executed between the Government of Nepal and the Bank. Such an agreement should stipulate the principal amount of the loan or the limit on a line of credit, the maturity date, and the applicable interest rates and other charges.
Explanation: For the purpose of this Section, “Negotiable Debt Bond” means the debt bond issued in the form of a promissory note.
5) At no time shall the amount of overdraft provided by the Bank to the Government of Nepal be more than five per cent of the revenue income of the Government of Nepal in the preceding fiscal year. While computing such revenue income, the amount of borrowing, grants or any other form of financial assistance or income received from the sale of property shall not be included.
6) Government of Nepal shall make the payment of the overdraft referred to in sub-section (5) within one hundred eighty days at the prevailing interest rate, either in the form of cash or marketable debt bond.
7) The total amount of debt bonds purchased by the Bank from the Government of Nepal and taken into its ownership shall not be more than ten per cent of the revenue income of the preceding fiscal year.
8) In the following circumstances, the debt bond issued by the Government of Nepal and purchased by the Bank shall not be treated as the credit extended under sub-section (7):
(a) If the purchase is made in the secondary market for the operation of the open market consistent with the monetary policy of the Bank,
(b) If the purchase is made in the primary market, when it is necessary in the opinion of the Bank, to maintain stability in the market at the time of primary issue of such securities and such securities are divested within 60 days of purchase,
(c) The debt bond purchased by the Bank from the Government of Nepal and retained in its ownership prior to the commencement of sub-section (7).
Nepal Rastra Bank Act, 2058

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 76: Bank’s Approval Required for Accepting Deposits or Giving Credits
1) Any person, firm, company, or institution shall, in order to accept any deposits or to provide a loan, obtain approval from the Bank as may be prescribed.
2) The Bank, while giving approval referred to in sub-section (1), may subject the approval to the terms and conditions prescribed by the Bank, and it shall be the duty of the concerned person, firm, company or institution to abide by such terms and conditions.

Nepal Rastra Bank Act, 2058

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 77: Restriction on Rate of Interest
An individual, firm, company or organisation authorised to accept a deposit or to provide a loan pursuant to prevailing laws, shall fix the rate of interest payable on a deposit and to be charged on a loan, subject to the arrangements prescribed by the Bank in the matter of the rate of interest from time to time.

Nepal Rastra Bank Act, 2058

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 78: License to be Obtained from Bank
1) Commercial Banks and financial institutions shall, in order to conduct banking and financial transactions, obtain a license from the Bank as prescribed.
2) While issuing a license pursuant to sub-section (1), the Bank may fix necessary terms and conditions, and it shall be the duty of the licensed bank and financial institution to abide by such terms and conditions.