Deposit and Credit Guarantee Fund Act, 2017

Chapter-1
Preliminary

1. Short Title and Commencement: (1) This Act may be cited as the "Deposit and Credit Guarantee Fund Act, 2073".

(2) This Act shall commence immediately. 2. Definitions: Unless the subject or context otherwise requires, in this Act,-

(a) "Chairperson" means the Chairperson of the Committee.

(b) "Credit Guarantee" means the work relating to the guarantee of credit provided by any bank or financial institution or institution performing financial intermediation added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. cooperative institution registered pursuant to the prevailing law relating to cooperatives, and that term also includes livestock insurance.

(c) "Fund" means the Deposit and Credit Guarantee Fund established pursuant to Section 3.

(d) "Acceptable Deposit" means all types of deposits of natural persons specified by this Act.

(e) "Third Party Deposit Account" means an account operated by a beneficiary third party, other than the person having the deposit account in a bank or financial institution, either by themselves or by their legal representative's signature.

(f) "Specified or as specified" means specified or as specified in the rules or regulations made under this Act.

(g) "Deposit" means the amount deposited in the current, savings, or fixed deposit account of a bank or financial institution added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. cooperative institution registered pursuant to the prevailing law relating to cooperatives, and that term also includes other amounts accepted by a bank or financial institution added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. cooperative institution registered pursuant to the prevailing law relating to cooperatives through various financial instruments specified by Nepal Rastra Bank from time to time.

(h) "Deposit Account" means a current, savings, or fixed deposit account maintained with a bank or financial institution licensed by Nepal Rastra Bank added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. or cooperative institution registered pursuant to the prevailing law relating to cooperatives.

(i) "Deposit Amount" means the amount deposited in any currency in the deposit account of a natural person.

(j) "Bank or Financial Institution" means a commercial bank or financial institution licensed pursuant to the prevailing law relating to banks and financial institutions.

(k) "Ministry" means the Ministry of Finance, Government of Nepal.

(l) "Valuation Date" means the date on which the annual guarantee fee payable for the guaranteed amount and the amount to be reimbursed are calculated as specified in this Act.

(m) "Reimbursement" means the payment of the guaranteed deposit as specified by the Fund subject to this Act.

(n) "Member" means a member of the Committee, and that term also includes the Chairperson.

(o) "Member Institution" means a bank or financial institution or institution performing financial intermediation added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. cooperative institution registered pursuant to the prevailing law relating to cooperatives that has obtained membership for providing credit guarantee as specified by the Fund.

(p) "Committee" means the Board of Directors of the Fund constituted pursuant to Section 8.

(q) "Guarantee Fee" means the fee payable to the Fund for guaranteeing a deposit or credit, and that term also includes a special contribution payable on deposits.

(r) "Guaranteed Deposit" means the deposit of a natural person guaranteed by the Fund under this Act pursuant to Section 19.

(s) "Guaranteed Member Institution" means a bank or financial institution added by the Act to Amend Some Nepal Acts Relating to Cooperatives, 2081. cooperative institution registered pursuant to the prevailing law relating to cooperatives collecting deposits to which the Fund provides guarantee pursuant to this Act.

(t) "Guaranteed Depositor" means a natural person who operates a joint account alone or jointly, or receives payment as a third party of a deposit account.

(u) "Joint Deposit Account" means an account operated by the joint signatures of two or more persons in a bank or financial institution.

(v) "Financial Liquidation" means the work relating to the winding up of a bank or financial institution carried out by Nepal Rastra Bank.