chhatramani/Nepal-Legal-Text-Corpus-44laws huggingface dataset:
Bank and Financial Institution Act 2073

Chapter-12 Provisions on Mandatory Liquidation of Bank or Financial Institutions

Section 94: Order of Priority for Payment
1) The bank or financial institution subjected to mandatory liquidation shall have to pay its liabilities in the order of the following priority:-
(a) Expenses incurred for mandatory liquidation,
(b) Amount up to the amount paid for deposit security/insurance made as per the prevailing laws subject not to exceed the limitation of the total approved claimed amount of the depositor or the amount equivalent to the paid amount if payment has been made to the security/insurance organization incorporated as per the prevailing laws for security of deposit,
(c) The deposits remaining after payment made pursuant to Clause (b),
(d) Salary, allowances and amounts for other liabilities payable to employees of the bank or financial institution,
(e) Amount payable to the Government of Nepal, local bodies, and the Rastra Bank,
(f) Outstanding amounts payable to other banks or financial institutions as fees or valuation amounts,
(g) Amounts payable for other creditors and other claims;
(h) Shareholders according to the prevailing laws.
2) Notwithstanding anything contained elsewhere in the Chapter, in case any creditor submits an application agreeing to accept any of the assets that were not sold while auctioning pursuant to Section 91 in lieu of the amount which the bank or financial institution has to pay him/her, the Liquidator may transfer such assets to such creditor having fixed the value of such assets subject to the norms determined by the Rastra Bank.
3) Notwithstanding anything contained elsewhere in the Chapter, in case any asset has been pledged as security for the secured creditors, such asset shall be used only for fulfilling the liability towards them.

Bank and Financial Institution Act 2073

Chapter-12 Provisions on Mandatory Liquidation of Bank or Financial Institutions

Section 95: Unclaimed Goods or Amount
While notice has been issued under this Chapter to receive the amount or goods according to details of the claims or liabilities, if the concerned person does not come to receive the amount or goods within the specified time, such amount or goods shall have to be kept under the responsibility of the Liquidator or other body as according to the direction given by the Rastra Bank.
Bank and Financial Institution Act 2073

Chapter-12 Provisions on Mandatory Liquidation of Bank or Financial Institutions

Section 96: Decision of Liquidation
1) The Liquidator of the bank or financial institution subject to mandatory liquidation or having its license revoked by the Rastra Bank shall have to submit an application before the court for liquidation after completion of the function of liquidation along with details of the activities performed.
2) In case the Liquidator submits an application to the court pursuant to sub-section (1), the court shall inquire on it as may be necessary and may decide that such bank or financial institution has been subjected to mandatory liquidation.
3) The Liquidator shall have to publish the decision given by the court pursuant to sub-section (2) in each national-level newspaper in Nepali or English language at least once, and while publishing in such manner, the main points in the order of the court and in the liquidation report shall have to be mentioned.
4) Upon publication of the notice pursuant to sub-section (3), the Liquidator shall request the Office of the Company Registrar to remove the name of the bank or financial institution from the list of registration of companies, and the Office of the Company Registrar shall publish the notice of removal of the name of the bank or financial institution from the Companies Registration Book in the Nepal Gazette accordingly.
5) The process of mandatory liquidation of the bank or financial institution shall be completed after removal of the name of the bank or financial institution subjected to mandatory liquidation after publishing notice thereof in the Nepal Gazette pursuant to sub-section (4) and such bank or financial institution shall be deemed to have been duly dissolved.
6) If there is any liability of a Director, Chief Executive, official, employee or shareholder of the bank or financial institution or other person under this Act or other prevailing Nepal laws, the mandatory liquidation of the bank or financial institution shall not absolve them from their respective liability.

Bank and Financial Institution Act 2073

Chapter-12 Provisions on Mandatory Liquidation of Bank or Financial Institutions

Section 97: Mandatory Liquidation of Bank or Financial Institution carrying on transactions in  more than one Country
The process of the mandatory liquidation of the branch of the bank or financial institution carrying on transactions in more than one country shall be as determined by the Rastra Bank by giving due consideration to best international practices.
Provided that mandatory liquidation of the bank or financial institution engaged as a subsidiary company of the bank or financial institution working in more than one country shall be according to this Chapter.
Bank and Financial Institution Act 2073

Chapter-12 Provisions on Mandatory Liquidation of Bank or Financial Institutions

Section 98: No claim to be entertained
The creditor or other person who does not submit the claim within the time prescribed while publishing notices for the same pursuant to Section 86 shall not be entitled to make the claim after that.
Provided that in case of the amount in the depositor’s account, there shall be no effect in his/her right for the reason of absence of the claim.
Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 100: Fines may be imposed
1) The Rastra Bank may impose the following fines against the bank or financial institution which does not give information or documents to be given according to this Act or Rastra Bank Act, or Rules, Byelaws, Directives or Orders issued thereunder; or which does not make available within the prescribed time the documents, description, statistics, or record as required by any officer deputed by the Rastra Bank for monitoring, inspection or supervision of the said bank or financial institution:-
(a) Daily one hundred thousand rupees up to one week from the date of expiry of the term,
(b) Daily one hundred twenty-five thousand rupees up to two weeks from the date of expiry of the term,
(c) Daily one hundred fifty thousand rupees from the date of expiry of the term referred to in Clause (b) up to an indefinite period of time.
2) In case a Promoter, Director, Shareholder, Chief Executive, official, an employee of a bank or financial institution, or any other related person violates this Act or the Rastra Bank Act or the Rules, Byelaws framed thereunder or the Directive or Order issued thereunder, or fails to implement the directive issued by Rastra Bank pursuant to Clause (b) of sub-section(3) of section 99, the Rastra Bank may impose a fine up to one million rupees having regard to the nature and gravity of the violation.
3) In case the bank or financial institution, having been imposed the fines pursuant to sub-section (1), does not pay the fine within three days from the date of receipt of information of the decision, the said amount shall be recovered by deducted from the amount deposited in the account of the said bank or financial institution opened at the Rastra Bank.
4) The cash fine to be received by the Rastra Bank pursuant to sub-sections (1) and (2) shall be deposited to the Government fund.
Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 101: Procedures of Actions
1) Except otherwise provided in this Act, the Rastra Bank shall follow the procedures as mentioned hereunder while taking actions pursuant to Section 99 and imposing fines pursuant to Section 100:-
(a) Before taking the proposed action or imposing fines, the alleged bank or financial institution or person shall be given a written notice of seven days to defend its/his/her position, stating the nature of the Act he/she has committed, a short description of the Act, the amount that may be imposed as fines and the proposed actions.
(b) The concerned bank or financial institution or person shall have to submit clarification in written form within seven days from the date of receiving written notice pursuant to Clause (a).
(c) If the written clarification submitted pursuant to Clause (b) is found to be satisfactory, Rastra Bank may amend, delimit or dismiss the charge.
(d) If the written clarification submitted pursuant to Clause (b) is not found to be satisfactory, the Rastra Bank may take action pursuant to Section 99 or impose a fine pursuant to Section 100.
2) Other procedures to be complied with while taking actions or imposing fines by the Rastra Bank shall be as prescribed by the Rastra Bank.
Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 103: Offences
1) Whoever commits any of the following acts contrary to this Act or the Rules, Byelaws, Directives, Orders issued under this Act or terms or limitation as prescribed shall be deemed to have committed an offence under this Act:-
(a) Carrying out banking and financial transactions without obtaining a license,
(b) Obtaining a license for carrying on banking and financial transactions, submitting wrong or false statements,
(c) Carrying out banking and financial transactions against the terms and limits of the license for carrying on banking and financial instruments,
(d) Carrying out foreign currency exchange-related business without license,
(e) Disbursing credits or other financing against this Act,
(f) Committing irregularities while carrying out valuation in artificial price while disbursing credits, recovering credits, valuating securities, recovering loan or carrying out any act relating thereto, creating artificial price while auctioning the assets pledged as collateral, or while accepting the property as non-banking assets or while selling by accepting non-banking assets or while taking collateral,
(g) Committing irregularities by any Director, official, employee and other person while carrying out merger and acquisition, liquidating, or auditing,
(h) Attempting to commit the offence referred to in Clauses (a) to (g) or abetting the commission of such offence in any manner.
2) Except in cases where a Director, official or any other person abetting in the commission of the offence referred to as sub-section (1) proves that he/she had tried his/her best effort to avoid committing such offence or that it was committed without his/her consent, the offence is deemed to have been committed by himself/herself.
3) Except in connection with regular transactions of the branch, in case an official or employee of a branch of a foreign bank transfers assets of such branch to another country, grants approval therefor, delegates authority to that effect, or abets the commission of such an act, it shall be deemed to be an offence under this Act.
Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 104: Punishment
1) Any person who commits any of the following offences shall be liable to the following punishment:-
(a) In case of the commission of the offence as referred to in Clause (a) of sub-section (1) of Section 103, the amount involved shall be confiscated, and the offender shall be punished with a fine up to three times the amount involved and imprisonment up to five years,
(b) In case of the commission of the offence referred to in Clause (b) of sub-section (1) of Section 103, the amount involved shall be confiscated, and the offender shall be punished with a fine up to two times the amount involved and imprisonment of up to two years,
(c) In case of commission of the offence referred to in Clause (c), (d), (e), (f) or (g) of sub-section (1) of Section 103, the amount involved, if any, shall be confiscated and the offender shall be punished with a fine equal to the amount involved and an
imprisonment up to one year,
(d) In case of the commission of the offence referred to in Clause (h) of sub-section (1) of Section 103, the amount involved, if any, shall be confiscated, and the offender shall be punished with half of the punishment to be imposed to the principal offender.
2) While ascertaining the amount involved for the purpose of sub-section (1), the amount shall have to be calculated having taken into account the entire amount involved.
3) While imposing fines for the offences as referred to in Clause (a) to (e) of sub-section (1), if the claimed amount is revealed, the fines shall be imposed accordingly, and if no such amount is revealed, the amount from one million to five million has to be fined.
4) In case of commission of the offence as referred to in sub-section (3) of Section 103, the offender shall be punished with a fine equivalent to the involved amount and imprisonment up to five years.
5) In case an offence as referred to in Section 103 is committed by any firm, company or corporate body, punishment according to this Section shall be imposed on the concerned Director, official, employee or a concerned person of the concerned firm, company,, or corporate body and if such concerned person could not be ascertained, the punishment shall be imposed on the chief of the firm, company, or corporate body.
6) In case anyone is found to have been committed in any offence as referred to in Section 103 and the proceeds of the offence are found to have been kept or concealed in the name of himself/herself, any member of the family or relative or in the name of anyone else, such property and the property accrued therefrom shall also be confiscated.
Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 105: Appeal
1) The bank or financial institution or a Director, official or employee thereof which/who is not satisfied with the actions taken by the Rastra Bank pursuant to Section 99 or punishment imposed pursuant to Section 100 may file an appeal at the court within 35 days from the date of getting order of such actions.
Provided that while filing an appeal against an action taken pursuant to Section 99 or punishment imposed pursuant to Section 100 on a bank or financial institution by any shareholder, it has to be filed by the representative of the shareholders representing at least 25 percent of the paid-up capital of the bank or financial institution.
2) In case any Director, official, employee or any other person desires to file an appeal pursuant to sub-section (1) against the personal actions or fines, fifty percent of the amount of such fines or any amount as given order to pay must be deposited.
3) The Director, official or employee of any bank or financial institution who is removed or dismissed from the office shall not be eligible to become a Director, official or employee of any other bank or financial institution until a period of five years has expired from the date of such taking of actions or until the final decision of the case if he/she has filed an appeal.

Bank and Financial Institution Act 2073

Chapter-13 Provisions on Actions, Offences and Punishment

Section 106: No obstruction to Punishment
In case any person is found to have committed any offence as referred to in Section 103 while holding any position of a bank or financial institution, there shall be no obstruction to take actions against him/her for the reason of his/her retirement or non-holding of the position.

Bank and Financial Institution Act 2073

Chapter-14 Miscellaneous

Section 107: Special Provisions on Infrastructure Development Bank
1) The Rastra Bank may formulate separate special policy provisions or issue directives concerning the establishment, operation, regulation, supervision actions, merger and acquisitions or liquidation of Infrastructure Development Banks based on the nature, volume and investment made in respective Infrastructure Development Banks.
2) Notwithstanding anything contained elsewhere in this Act, the maximum limit of shares to be subscribed by a promoter or shareholder of an Infrastructure Development Bank or limit of equity investment to be made by any foreign bank, financial institution and other corporate bodies in shares, debentures or other financial instruments shall be as determined by the Rastra Bank from time to time

Bank and Financial Institution Act 2073

Chapter-14 Miscellaneous

Section 108: Security of Deposits to be made
A licensed bank or financial institution shall have to secure the amount remaining in the deposit account as prescribed by the Rastra Bank in accordance with the provision prescribed by the prevailing law.
Bank and Financial Institution Act 2073

Chapter-14 Miscellaneous

Section 109: Banking Secrecy to be Maintained
1) The relationship between a bank or financial institution and its customers and information pertaining to its accounts, records, books, ledgers and statements shall not be disclosed to any person other than the concerned person.
2) Notwithstanding anything contained in sub-section (1), the secrecy shall not be deemed to have been violated if the details or information of any person remained in the bank or financial institution is provided in the following manner: –
(a) If the details or information is provided to the Rastra Bank pursuant to this Act or Rastra Bank Act or the Rules or By-laws framed thereunder or the orders or directives issued thereunder or if the details or information is shared between banks or financial institutions in the course of exchanging credit information,
(b) If the details or information is provided to the court in connection with any litigation or any other legal action,
(c) If such notice or information is provided to the legally authorized official inquiries and investigations or prosecution, in connection with such inquiries and investigations or prosecution; or if it is provided to the enquiry committee or the investigation officer authorized by the other prevailing laws, in the course of enquiries or if such information is provided to the regulatory bodies,
(d) If any details or information is provided to the auditor in the course of auditing,
(e) If any details or information is provided to a foreign country in accordance with prevailing laws relating to mutual legal assistance,
(f) If, in the course of the investigation of any case of a specific nature, the Government of Nepal, Ministry of Finance, has made a request, accompanied by the reason therefor, for providing the details of the account of the bank or financial institution or any details of the account of any person, firm, company or institution maintained with the bank or financial institution, and if the Rastra Bank has given direction for the same.
3) No one shall divulge any information or details received under sub-section (2) to any unauthorized person.
4) Except in the situation as mentioned in sub-section (2), the Directors, Chief Executive, employees, auditor, advisors of a bank or financial institution or any other relevant person shall not divulge the secrecy of the accounts, records, books, ledgers and any other information of the bank or financial institution the confidentiality of which is required to be maintained in such a manner as to undermine the relationship between the bank or financial institution and its customers.
Bank and Financial Institution Act 2073

Chapter-14 Miscellaneous

Section 110: Power to give Directive to freeze Accounts
1) The Rastra Bank may, in the following circumstances, give a directive to a bank or financial institution at any time to freeze any account not allowing any type of payment or transfer of funds in the name of any person, firm, company or institution:-
(a) In case of a request made by an authorized officer to the Rastra Bank in the course of investigation of any offence,
(b) In order to uphold national interests by preventing money laundering and terrorist financing and controlling an offence of corruption, organized crime or possible offence may be incurred in the transaction of bank and financial institutions.
2) It shall be the duty of the concerned bank or financial institution to comply with the directive given by the Rastra Bank pursuant to sub-section (1).

Bank and Financial Institution Act 2073

Chapter-14 Miscellaneous

Section 111: Right to Claims over the Deposits
1) Claims of any person other than the actual depositor to deposits made with a licensed institution shall not be entertained.
2) In the event of the death of the depositor, the nominee appointed by him/ her, if any, and if such nominee also dies or if no nominee has been appointed by the depositor, the surviving person from amongst his/her relatives, in the following order, shall have first right to such deposits: –
(a) Husband or wife living in the joint family,
(b) Son or daughter, or adopted son or adopted daughter or widow daughter-in-law, living in a joint family,
(c) Father, mother, grandson or granddaughter living in the joint family,
(d) Husband or wife, son, daughter, father or mother, son, daughter-in-law or married daughter living separately,
(e) Grandfather, grandmother, brother, nephew, niece, sister living in the same family, grandfather or grandmother living separately,
(f) Stepmother living in the joint family, grandson and unmarried granddaughter towards son living separately,
(g) Elder or younger brother living separately, nephew, niece, sister, nephew, niece
(h) Uncle, widowed aunt, sister-in-law (elder or younger brother’s wife), or grand-daughter-in-law living in a joint family,
(i) Married sisters and granddaughter-in-law live separately.
3) If there is no one in the order of priority as referred to in sub-section (2), the successor shall have the title to such deposit, and if there is not even such successor, the deposit shall be collected to the Banking Development Fund of the Rastra Bank and be used for banking development.
4) Notwithstanding anything contained in prevailing laws, no amount deposited with a bank or financial institution shall be handed over to anyone without the approval of the person who has the title thereto under sub-section (1).