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

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 80: Banking and Financial System and Credit Control
The Bank may issue directives from time to time to commercial banks and financial institutions on the banking and financial system, currency and credit. It shall be the duty of commercial banks and financial institutions to abide by such directives.

Nepal Rastra Bank Act, 2058

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 81: Credit to Prescribed Sectors
1) Commercial banks and financial institutions shall advance credit to the sectors prescribed by the Bank from time to time for a prescribed period and in the manner prescribed by the Bank.
2) In cases where any commercial bank or financial institution does not advance the credit pursuant to sub-section (1) or advance credit less than prescribed amount, the Bank may recover as fine an amount equal to the interest which a commercial bank or financial institution would have charged for the amount of credit not advanced or advanced less than the prescribed amount from the concerned commercial bank or financial institution.

Nepal Rastra Bank Act, 2058

Chapter 9 Regulation, Inspection and Supervision of the Banks

Section 82: Information to be Furnished to Bank
1) Commercial banks and financial institutions shall furnish the particulars of their transactions and financial position to the Bank as prescribed by the Bank.
2) The Bank may publish the particulars made available pursuant to sub-section (1).
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 84: Inspection and Supervision
1) The Board shall frame and implement an inspection and supervision bylaw conforming to the international standard for inspection and supervision of the commercial banks and financial institutions licensed by the Bank.
2) The Bank may, at any time, inspect and supervise or cause to inspect and supervise any of the offices of commercial banks or financial institutions. Such inspection and supervision may be carried out by the deputed official of the Bank or an expert designated by the Bank at the office of the commercial bank or financial institution, or by asking the concerned institution to submit detailed particulars and information to the Bank itself.
3) It shall be the duty of the concerned commercial bank and financial institution or Directors, officials or employees of such commercial bank and financial institution to make available the statement, data, record, information, particulars necessary for computer and auditing and other programs and particulars developed through the electric system and financial control system or necessary other documents to such official, expert or the Bank or to enable such official or expert to review or to examine them within the time prescribed by such officer or expert.
4) The inspecting and supervising official or the Bank under this Section may cause to be recorded written statements of any Director, official or employee of the commercial banks or financial institutions with regard to the functions and proceedings which are deemed necessary in the course of inspection and supervision.
5) The Bank or the inspecting and supervising official may issue necessary directives to the commercial bank or financial institution on the matters deemed necessary while inspecting and supervising. It shall be the duty of the concerned commercial bank or financial institution to abide by the directives issued by the Bank or by the inspecting or supervising officials. The inspecting or supervising official shall inform the Bank as soon as possible about the directives so given.
*6) The official or the expert who carries out inspection and supervision as per this Section shall have to submit the report of the inspection and supervision carried out by him/her to the Governor within the stipulated deadline.
7) The report submitted pursuant to sub-section (6) should be submitted at the next meeting of the Board.
8) The Board may, after making an appropriate decision on matters contained in the report submitted pursuant to sub-section (7), issue appropriate directions to the Governor about the actions to be taken in the matter. It shall be the responsibility of the Governor to implement or cause to implement such directions.
* Amended by the Second Amendment.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 85: Exchange of Mutual Cooperation
1) The Bank may, in order to supervise commercial banks and financial institutions under its supervisory jurisdiction, exchange cooperation with the concerned foreign supervisory authority on a reciprocal basis.
2) The Bank may exchange the notices or information received for carrying out supervision pursuant to sub-section (1) with the foreign supervisory authority, provided that such authority undertakes to respect the confidentiality of the information so received.
3) The Bank may exchange mutual cooperation with other institutions regulating policies related to the financial system to promote the financial system.

Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86: ……
*..
* Deleted By the Second Amendment.

Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86A: Commercial Banks and Financial Institutions to Provide Information to the Bank
A commercial bank or financial institution shall inform the bank within fifteen days about the situation of insolvency or state of dissolution under the prevailing law, or incapability to pay the debt, or being materially unable to discharge any or all liabilities by any commercial bank or financial institution.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86B: Commercial Bank and Financial Institution Deemed to be Problematic
Bank shall declare any commercial bank or financial institution problematic by providing written notice to it when bank is convinced that the following conditions are prevailing in any commercial bank or financial institution on the basis of information received under Section 86A or from the report of inspection and supervision conducted under Section 84 or from any other means.
(a) In case any action against the interest of the depositors, shareholders, creditors, or the general public is evident,
(b) In case of non-fulfilment of any financial liabilities or not having the ability to do so, or non-payment of the due amount,
(c) In case of insolvency or going to be insolvent or facing material financial difficulties,
(d) In case of non-compliance with or breach of this Act, the prevailing law related to banks and financial institutions, other prevailing laws, terms of license or regulation, directives or orders of the bank,
(e) In case it is evident that the license has been obtained on the basis of submitting false, fraudulent, or wrong documents or data,
(f) In case of inability to maintain the capital fund as per this Act, the prevailing law related to banks and financial institutions and directives issued by the bank from time to time,
(g) In case of the initiation of legal proceedings for liquidation, resolution, or insolvency of any commercial bank or financial institution under the prevailing law,
(h) In case of undue delay in the process of voluntary liquidation, where such a proceeding has been initiated,
(i) For the commercial bank or financial institution established with the joint venture of the foreign commercial bank or financial institution, while such foreign commercial bank or financial institution is insolvent or liquidator is appointed for the liquidation or the license of such commercial bank or financial institution is terminated under the provision of the law of respective country or transaction is banned either fully or partially or where it is evident that operation of banking transaction is done in association with such commercial bank or financial institution, or
(j) If the bank is convinced that a commercial bank or financial institution is unable to pay its due or can have a negative effect on its liability or duties, which it has to perform.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86D: Effect of the Control of the Bank on any Commercial Bank or Financial Institution
1) While bank takes control of any commercial bank or financial institution by issuing order under the provision of the Clause (o) of sub-section (1) of Section 86C, for the management and operation of transaction respective commercial bank or financial institution; the directors, manager and employees of such commercial bank or financial institution have to provide the assets, material goods and all transaction and its report and other necessary cooperation and facilities to the bank or the official appointed by the bank.
2) While bank takes control of any commercial bank or financial institution by issuing order under the provision of the Clause (o) of sub-section (1) of Section 86C, the official appointed by the bank for the management and operation of transaction of such commercial bank or financial institution, being within the limitation of order issued by the bank have to manage and operate such commercial bank or financial institution in the name of such commercial bank or financial institution by taking control of the property and transaction unless the bank decide otherwise for such order.
3) Notwithstanding any provision contained in the prevailing law, the appointed official for management and operation of any commercial bank or financial institution which is in the control of the bank, can exercise all the rights conferred to such commercial bank or financial institution, its board of directors, shareholders or manager by prevailing law, memorandum and article association of such commercial bank or financial institution and such official can exercise the act assigned for the general meeting or special general meeting or any rights by any other way of such commercial bank or financial institution.
4) Till the date of validity of the order issued by the bank to take the control of any commercial bank or financial institution, no director, manager or employee removed under the provision of Clause (n) of the sub-section (1) of Section 86C and suspended director under the Clause (o) of such commercial bank or financial institution, can be involve in the management or take any remuneration or facility from such commercial bank or financial institution during the period of being problematic without written permission of the bank or the official appointed for the management and operation of such commercial bank or financial institution.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86E: The Reformative Measures and Power to be Used by the Bank or the Official Appointed by the Bank
1) Whatever may be mentioned in the Companies Act or other prevailing law, the bank itself or with the prior approval of the bank the official appointed by the bank can initiate one or more than one of the following actions for the purpose of restructuring of any problematic commercial bank or financial institution which is under the control of the bank by order issued under the provision of Clause (o) of sub-section (1) of the Section 86C:
(a) To cancel or suspend any transaction operating within or outside Nepal.
(b) To sell the assets of such a commercial bank or financial institution to any other commercial bank or financial institution on terms and conditions determined by the bank.
(c) To terminate the employment of the employees working in such a commercial bank or financial institution and to appoint new employees in their place as per necessity.
(d) To merge such a commercial bank or financial institution with another commercial bank or financial institution or arrange to transfer the assets and liabilities of such a commercial bank or financial institution, partially or wholly, to any other commercial bank or financial institution or any other body.
(e) To increase the capital, based on the standard determined by the bank, by selling the shares to other people to reduce the participation of the present shareholders or to restructure such a commercial bank or financial institution by reshuffling the board of directors.
(f) To reduce the capital reflecting the actual price of real assets of such a commercial bank or financial institution under the provision of Section 86H and determine the face value of the shares in the proportion of reduced capital.
(g) To do necessary managerial restructuring or corporate restructuring by closing the branches and transactions which are not properly running for the protection of the interests of the depositors, shareholders, creditors and the general public.
(h) To implement or cause to implement other measures determined by the bank to make the problematic commercial bank or financial institution competitive.
2) The reasonable opportunity of hearing should be provided to any commercial bank or financial institution before taking any decision under Clause (f) or (g) of sub-section (1).
Provided that, if the bank feels that prior opportunity of hearing can make negative effect to the interest of its depositors, shareholders, creditors or general public, the bank can provide the opportunity of hearing as soon as possible after making such decision and if the bank satisfied with the reason and basis presented during the time of hearing it can change or repeal the decision as per necessity.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86G: Can be Subject of Resolution
While taking action upon any problematic commercial bank or financial institution as per Section 86 C. or adopting reformative measure as per Section 86 E. or carrying out remedial work as per Section 86 F. as well, if the Bank believes in the matter that such commercial bank or financial institution is not able to fulfil the liability to be fulfilled or has fallen into the condition of not being able to operate properly, the Bank can take decision to subject such commercial bank or financial institution of the process of clearing and settlement.

Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86H: Decreasing the Capital of Problematic Commercial Bank or Financial Institution
1) Whatever may be mentioned in the Companies Act or other prevailing law or memorandum and article of association of the problematic commercial bank or financial institution, after taking such commercial bank or financial institution in its control under the provision of the Clause (o) of the sub-section (1) of the Section 86C, in case there is reduction of the paid up capital of such commercial bank or financial institution or the due amount was not paid by the shareholders or liabilities is not recoverable by the assets of such commercial bank or financial institution, bank can decrease the share capital of such commercial bank or financial institution in limit of reduction of the share capital or liabilities which is not coverable by the assets.
Provided that, before a decrease in share capital, the bank has to publish a minimum of two notices of this effect in a national daily.
*2) …
3) Before issuing the notice under sub-section (1), the bank must provide thirty days’ notice to shareholders who have paid the due amount for the price of their paid-up shares. The bank can initiate the process of cancelling the shares of those shareholders who have not paid the due amount after such notice. Additionally, the bank can determine the minimum price for the shares of a commercial bank or financial institution that is insolvent or in the process of dissolution.
4) In case of a decrease in the share capital of any commercial bank or financial institution under sub-section (1) or cancellation of shares under sub-section (3), it may be
ipso facto
considered that an amendment in the memorandum and articles of association of such commercial bank or financial institution is made accordingly.
* Deleted By the Second Amendment.
Nepal Rastra Bank Act, 2058

Section 83: Approval Required to Issue Debentures and Financial Instruments

Section 86I: Right to Appeal Against the Order of the Bank
1) Only the representative of shareholders of the commercial bank or financial institution can appeal to the committee within fifteen days against the action, order, decision or Proceedings of the bank or the official appointed by the bank, under Section 86C, 86D, 86E, 86f and 86h, if not satisfied with such action, order, decision or proceedings.
Clarification: For the purpose of this Section, “shareholders representative” means a representative elected among the shareholders holding a minimum of twenty per cent of the prevailing shares.
2) No appeal will be entertained without having the representation of twenty-five per cent of the prevailing shares within the time of sub-section (1).
3) In the case of the appeal under the provision of sub-section (1), the committee has to approve, review or cancel the action, order, decision or proceedings done by the bank or the official appointed by the bank, within thirty days of receipt of such appeal by giving related proof, basis and reasons.
4) The bank may provide information about the decision made under sub-section (3) within fifteen days of such a decision to the respective representative of the shareholders.
5) The action, order, decision or Proceedings of the bank or the official appointed by the bank shall continue unless the committee under sub-section (3) cancel it.
6) The decision of the committee under sub-section (3) on the appeal of the shareholders’ representative shall be final.

Nepal Rastra Bank Act, 2058

Section 86M.……

Section 87: Establishment of Information Network
The Bank shall, in order to promote the banking and financial system of Nepal, establish and operate an information network as prescribed.
Nepal Rastra Bank Act, 2058

Section 86M.……

Section 88: Establishment of Credit Information Centre
1) The Bank shall establish or cause to establish one credit information centre for the following purposes:
(a) To obtain information on the flow of credit from commercial banks and financial institutions in order to ensure fairness and appropriateness in credit flow,
(b) To require the exchange of the information received pursuant to Clause (a) amongst the commercial banks and financial institutions for the purpose referred to in that Sub-Section,
(c) To require the sending of the name-list of the debtors not repaying the loan in time or misusing the loan to the Centre,
(d) To require the obtaining on a compulsory basis of the information from the Centre prior to making an investment or advancing a loan of an amount more than the limit prescribed by the Bank,
(e) To have the name-list received pursuant to Clause (c) blocked by the Centre upon confirmation and to take necessary action in this regard, and
(f) To submit a report to the Bank on the exchange of information among the commercial bank and financial institutions and use such information while making loan investments on the basis of inspection, supervision and monitoring.
2) The Bank shall regulate and manage the functions referred to in sub-section (1) as specified.

Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88A: Power of the Bank to Carry Out Work of Resolution
1) On any of the following conditions, the Bank can further the work of resolution by taking up any commercial bank or financial institution under its control:
(a) If its liability of payment cannot be made fully or partially,
(b) If there is a condition of not being able to fulfil the liabilities to be paid, on the ground of supervisory analysis, within ninety days from the date of the completion of the work relating to such analysis,
(c) If liability exceeds the net assets,
(d) If a sustained loss that cannot be covered up even by all kinds of capital and funds prescribed by the Bank,
(e) If the Bank makes a decision to take the process of resolution as per Section 86 G.
2) Only the bank shall have the power to carry out, or get the resolution carried out, of the claim of the depositor and secured creditor remaining upon any commercial bank or financial institution.
3) Total expenses incurred while carrying out work relating to the resolution of the commercial bank or financial institution shall have to be borne out of the amount received after selling out the properties of the commercial bank or financial institution concerned.
Nepal Rastra Bank Act, 2058

Chapter 9A Provisions Relating to Resolution

Section 88B: Provision Relating to the Formation of the Special Administration
1) If a decision is made to further the work of resolution of any commercial bank or financial institution as per Section 88A., the Bank can further the work of resolution by forming Special Administration Team comprised of maximum three persons from among the persons having qualifications as per prescribed for this purpose, and by taking up the concerned commercial bank or financial institution under its control through this.
2) If the work of all or any member of the Special Administration Team is not satisfactory, the Bank can dismiss him/her from the post as per prescribed.
3) Before dismissing him/her from the post as per sub-section (2), he/she shall have to be given the opportunity of hearing from him/her by being allowed a reasonable time.
4) If the Bank dismisses a member of the Special Administration Team before accomplishing the work relating to resolution, it can appoint another person having the qualifications for that post as prescribed.
5) The remuneration of the member of the Special Administration Team shall be as prescribed, so as to be associated with work performance.