chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Nepal Rastra Bank Act, 2002

Added by the First Amendment. 86cha. The Bank's right to take remedial actions: (1) The Bank shall, within one year of taking control of a problem commercial bank or financial institution pursuant to clause (ṇa) of sub-section (1) of Section 86ga., conduct or cause to conduct a management audit or audit of such commercial bank or financial institution and publish its report publicly.

(2) Based on the management audit or audit report pursuant to sub-section (1), notwithstanding anything contained in the Companies Act or other prevailing laws, if the Bank is satisfied that a commercial bank or financial institution it has taken control of can be operated well, the Bank may take the following remedial actions as necessary:-

(a) Revoke the suspension of the board of directors suspended pursuant to clause (ṇa) of sub-section (1) of Section 86ga. and order the same board of directors to resume management or business operations,

(b) Dismiss the board of directors suspended pursuant to clause (ṇa) of sub-section (1) of Section 86ga. and form a new board of directors from among the shareholders of such commercial bank or financial institution and cause them to conduct management or business operations,

(c) Dismiss the board of directors suspended pursuant to clause (ṇa) of sub-section (1) of Section 86ga., convene a general meeting of such commercial bank or financial institution, and cause the formation of a new board of directors to conduct its management or business operations, or

(d) Adopt any other remedial measure deemed appropriate by the Bank.
Nepal Rastra Bank Act, 2002

Amended by the Second Amendment.
(3) Based on the management audit or audit report pursuant to sub-section (1) or the report of an officer appointed by the Bank, subject to the criteria prescribed by the Bank, the Bank may, by publishing a public notice, order any shareholder to sell, distribute and transfer the shares registered in his/her name to any person deemed appropriate by the Bank, upon receiving a price determined by a committee formed by including representatives of the Nepal Securities Board and the Institute of Chartered Accountants of Nepal as well as other external experts, as necessary.

(4) If the shares cannot be sold, distributed or transferred for any reason pursuant to clause (a) of sub-section (3), the Bank may confiscate such shares, and the shares so confiscated may be sold, distributed or transferred to any other person by the Bank in a manner deemed appropriate, also taking the opinion of the committee formed pursuant to clause (a) of sub-section (3).

(5) When a decision pursuant to sub-section (3) has to be taken against a commercial bank or financial institution, the Bank shall give the concerned parties a reasonable opportunity of hearing before making a decision on the proposed matter. Provided that, if the Bank believes that giving an advance opportunity of hearing would adversely affect the interests of such commercial bank or financial institution, its depositors, shareholders, creditors or the public, such decision may be taken and an opportunity of hearing shall be given as soon as possible, and if the Bank is satisfied with the reasons and grounds revealed from the hearing so held, such decision may be modified or revoked as necessary. Amended by the Second Amendment. 86chha. May take to resolution: If, while proceeding with action pursuant to Section 86ga. against a problem commercial bank or financial institution, or while adopting corrective measures pursuant to Section 86ṅa., or while taking remedial actions pursuant to Section 86cha., the Bank is satisfied that such commercial bank or financial institution is unable to fulfill its obligations or has reached a state where it cannot be operated properly, the Bank may decide to take such commercial bank or financial institution into the resolution process pursuant to Chapter 9A. Added by the First Amendment. 86ja.
Nepal Rastra Bank Act, 2002

Added by the First Amendment. 86ja. May reduce capital of a problem commercial bank or financial institution: (1) Notwithstanding anything contained in the Companies Act or other prevailing laws or in the Memorandum and Articles of Association of a problem commercial bank or financial institution, after the Bank has taken control of a problem commercial bank or financial institution pursuant to clause (ṇa) of sub-section (1) of Section 86ga., if it appears that the paid-up capital of such commercial bank or financial institution has been eroded, or the amount to be paid by shareholders has not been paid, or the liabilities of such commercial bank or financial institution are not covered by its assets, the Bank may reduce the share capital by canceling the portion of capital that has been eroded or is not covered by the assets. Provided that, before reducing the share capital, the Bank shall publish a notice thereof in a national daily newspaper at least twice.

(2) Removed by the Second Amendment.

(3) While publishing a notice pursuant to sub-section (1), in the case of shareholders who have not paid the paid-up value of shares, the Bank shall give a period of thirty days to pay such amount. While issuing such notice, the Bank may proceed with the process of canceling the shares of shareholders who do not pay the demanded amount, and in the case of shares of a commercial bank or financial institution that is under liquidation or resolution or winding up, the Bank may Added by the Second Amendment. fix a minimum value for such share capital.

(4) If the Bank reduces the share capital of a problem commercial bank or financial institution pursuant to sub-section (1) or cancels shares pursuant to sub-section (3), the Memorandum and Articles of Association of such commercial bank or financial institution shall be deemed to have been amended automatically accordingly. Added by the First Amendment. 86jha. Right to appeal against the Bank's order: (1) If any person is dissatisfied with any act, order, decision or action taken by the Bank or an officer appointed by the Bank pursuant to Sections 86ga., 86gha., 86ṅa., 86cha., and 86ja., only the representative of the shareholders of such commercial bank or financial institution shall have the right to appeal to the Committee within fifteen days of such act, order, decision or action.
Nepal Rastra Bank Act, 2002

Explanation: For the purposes of this section, "representative of shareholders" shall mean a person elected by the shareholders from among themselves representing at least twenty-five percent of the then paid-up capital.

(2) An appeal filed without representing at least twenty-five percent of the then paid-up capital within the period pursuant to sub-section (1) shall not be heard.

(3) If an appeal is filed before the Bank pursuant to sub-section (1), the Committee may, within thirty days from the date of receipt of such appeal, stating the relevant evidence, grounds and reasons, uphold, review or cancel the act, order, decision or action of the Bank or the officer appointed by the Bank.

(4) The Committee shall give notice of the decision made pursuant to sub-section (3) to the concerned representative of shareholders within fifteen days.

(5) Except insofar as the Committee cancels the act, order, decision or action of the Bank or the officer appointed by the Bank pursuant to sub-section (3), such acts and actions shall remain valid.

(6) The decision of the Committee pursuant to sub-section (3) on the appeal of the representative of shareholders shall be final. Repealed by the Second Amendment. 86ja. Repealed by the Second Amendment. 86ṭa. Repealed by the Second Amendment. 86ṭha. Repealed by the Second Amendment. 86ḍa. Repealed by the Second Amendment. 86ḍha. 87. Establishment of information network: The Bank shall establish and operate an information network as prescribed for the promotion of the banking and financial system, Removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066

88.
Nepal Rastra Bank Act, 2002

Repealed by the Second Amendment. 86ḍa. Repealed by the Second Amendment. 86ḍha. 87. Establishment of information network: The Bank shall establish and operate an information network as prescribed for the promotion of the banking and financial system, Removed by the Republic Strengthening and Some Nepal Laws Amendment Act, 2066

88. Establishment of credit information center: (1) The Bank may establish or cause to establish a credit information center for the following purposes:-

(a) To obtain information on credit extended by banks and financial institutions or cooperative institutions registered under the prevailing law relating to cooperatives, Amended by the Act to Amend Some Nepal Acts relating to Cooperatives, 2081. for maintaining accuracy and appropriateness in credit flow,

(b) To exchange among banks and financial institutions or cooperative institutions registered under the prevailing law relating to cooperatives, Amended by the Act to Amend Some Nepal Acts relating to Cooperatives, 2081. the information obtained pursuant to clause (a) for the purpose mentioned in that clause,

(c) To ensure mandatory submission to the center of the list of borrowers who do not repay loans on time or misuse loans,

(d) To compulsorily obtain information from the center before making investments or granting loans exceeding the limit prescribed by the Bank,

(e) For the center to verify the list obtained pursuant to clause (c), place it on a blacklist and take necessary action in that regard, and

(f) To inspect, supervise and monitor whether each bank and financial institution or cooperative institution registered under the prevailing law relating to cooperatives Amended by the Act to Amend Some Nepal Acts relating to Cooperatives, 2081. has exchanged such information or not and whether loans are invested in accordance with such information or not, and submit a report to the Bank.

(2) The Bank shall regulate and systematize the activities mentioned in sub-section (1) as prescribed. Chapter 9A

Provisions Relating to Resolution

Added by the Second Amendment. 88ka.
Nepal Rastra Bank Act, 2002

Chapter 9A

Provisions Relating to Resolution

Added by the Second Amendment. 88ka. The Bank's right to carry out resolution: (1) The Bank may take control of a commercial bank or financial institution and proceed with resolution in any of the following circumstances:-

(a) If it is unable to pay its liabilities in full or in part,

(b) If, based on a supervisory analysis, it is in a position where it cannot fulfill liabilities due within ninety days from the date of completion of such analysis,

(c) If liabilities exceed net assets,

(d) If it incurs losses to such an extent that even all types of capital and funds prescribed by the Bank cannot cover them,

(e) If the Bank decides to take it into the resolution process pursuant to Section 86chha.

(2) Only the Bank shall have the right to resolve claims of depositors and secured creditors against a commercial bank or financial institution.

(3) All expenses incurred in carrying out the resolution of a commercial bank or financial institution shall be borne from the proceeds obtained by selling the assets of the concerned bank or financial institution. 88kha. Provision relating to formation of a Special Administration Group: (1) If a decision is made to proceed with the resolution of a commercial bank or financial institution pursuant to Section 88ka., the Bank shall, for that purpose, form a Special Administration Group consisting of up to three persons from among those possessing the qualifications prescribed, and through it, take control of the concerned commercial bank or financial institution and proceed with the resolution.

(2) If the work of all or any member of the Special Administration Group is not satisfactory, the Bank may remove such member as prescribed.

(3) Before removal pursuant to sub-section (2), a reasonable period and opportunity of hearing shall be given to such person.

(4) If a member of the Special Administration Group is removed before the completion of the resolution work, a person possessing the prescribed qualifications may be appointed for the remaining period in his/her place.

(5) The remuneration of members of the Special Administration Group shall be as prescribed, linked to the performance of work. 88ga.
Nepal Rastra Bank Act, 2002

88ga. Work, duties and rights of the Special Administration Group: (1) The Special Administration Group shall have all the powers exercisable by the general meeting, board of directors, chief executive officer and other officers of the concerned commercial bank or financial institution.

(2) Subject to sub-section (1), the Special Administration Group shall have the following powers with respect to managing the movable and immovable property of the concerned commercial bank or financial institution, resolving any assets and liabilities, and operating such commercial bank or financial institution:-

(a) To sell all or part of the unsold shares of the commercial bank or financial institution to new persons,

(b) To entrust any other institution with conducting any operations or performing specific functions that can be regularly conducted from a systemic perspective, or to establish a separate bridge institution or unit for a limited period to conduct such functions,

(c) To sell any or all operations or assets of the concerned commercial bank or financial institution or any subsidiary company thereof,

(d) To sell assets or rights of the concerned commercial bank or financial institution held in any other person or entity.

(3) The Special Administration Group shall also have the following other powers in relation to the commercial bank or financial institution under resolution:-

(a) To require the relevant person to submit documents deemed necessary by the Special Administration Group to proceed with resolution work,

(b) To transfer or cause to transfer the ownership of shares or other instruments issued by the concerned commercial bank or financial institution,

(c) To transfer certain rights, assets or liabilities of the concerned commercial bank or financial institution to another person,

(d) To cancel shares or other instruments issued by the concerned commercial bank or financial institution,

(e) To transfer shares or other ownership instruments issued by the concerned commercial bank or financial institution or held by any or all of its shareholders to the name of another person on a prescribed basis,

(f) To issue preference shares or other capital instruments,

(g) To take all steps deemed necessary for the protection and care of the assets of the concerned commercial bank or financial institution.

(4) While carrying out resolution work of a commercial bank or financial institution pursuant to this section, the Special Administration Group shall not be required to do the following:-

(a) Obtain prior consent of any persons in the public or private sector, including shareholders, depositors or creditors of the commercial bank or financial institution under resolution,

(b) Notify any person, firm, company or entity, except as otherwise provided in this Chapter.

(5) The Special Administration Group shall complete the resolution work pursuant to this Act within one year of its commencement.
Nepal Rastra Bank Act, 2002

Provided that, if any work related to the resolution being carried out by the Special Administration Group cannot be completed within the prescribed time, the Bank may extend the term of the Special Administration Group based on necessity and justification.

(6) The Special Administration Group may also perform any or all of the following acts on behalf of the concerned commercial bank or financial institution:-

(a) Continue operations other than collecting deposits and granting any loans,

(b) Suspend or cease any operations being carried out by the commercial bank or financial institution,

(c) Borrow loans with or without pledging the assets of the commercial bank or financial institution,

(d) Stop payment of liabilities of the commercial bank or financial institution or set limits therefor,

(e) Appoint or dismiss officers, employees or professional advisors necessary for the commercial bank or financial institution,

(f) Convene meetings of depositors and creditors for discussion and decision on matters deemed necessary by the Special Administration Group,

(g) Make legal defenses in the name of the commercial bank or financial institution, or

(h) Perform or cause to perform other necessary work related to resolution.

(7) The Special Administration Group shall have full right of access and control over the offices, books of accounts, records, assets and information technology systems of the concerned commercial bank or financial institution and its subsidiary companies.

(8) If the Special Administration Group finds it appropriate to merge all or major assets of the commercial bank or financial institution under its control with any other commercial bank or financial institution, or to acquire assets of another commercial bank or financial institution and merge with it, it shall submit a petition with a proposal to the Bank in accordance with the prevailing law in that matter. Upon receipt of such petition with a proposal, the Bank shall take a decision to accept or reject such proposal.

(9) Based on the financial position of the commercial bank or financial institution, a statement of the estimated expenses to be incurred in the resolution process and other expenses required under prevailing law shall be prepared, and arrangements shall be made to repay or pay the amount due in respect of matured deposit liabilities, either in a lump sum or in installments, from the funds available for such payment.
Nepal Rastra Bank Act, 2002

While making such payments, depositors and creditors of the same class shall be treated equally.

(10) The procedure for determining the validity of claims submitted by depositors and creditors against the concerned commercial bank or financial institution, payment of claims, determination of liabilities, and return of personal property of the debtor shall be as prescribed.

(11) Notwithstanding anything contained in the prevailing law, when selling assets of a commercial bank or financial institution, the Special Administration Group may, on the basis prescribed, determine a minimum price and sell them by one or more methods such as auction, sealed bid, negotiation, maintaining transparency and a business perspective.

(12) The Special Administration Group shall submit to the Bank, from time to time as prescribed, financial statements of the commercial bank or financial institution, a plan for sale of its assets and its views thereon, an estimate of its liabilities or the method of payment thereof, and a statement including the actual transfer of assets and estimate of liabilities.

(13) If the Special Administration Group deems it necessary to issue new shares of the concerned commercial bank or financial institution, sell assets, consolidate assets for securitization, make arrangements for estimating liabilities, or manage such activities, it may entrust the work to any agency or company established to carry out asset management work under the prevailing law. The rights to sell non-performing loans, assets difficult to value, and liabilities of the concerned commercial bank or financial institution may also be transferred to such agency or company. 88gha. Automatic suspension of powers during resolution: (1) The powers of the directors, chief executive officer and other officers of a commercial bank or financial institution under resolution shall be automatically suspended for the duration of the resolution.

(2) Notwithstanding anything contained in sub-section (1), the Special Administration Group may revoke the suspension of all or any of the directors, chief executive officer and other officers of the concerned commercial bank or financial institution to perform the tasks specified by it and assign them to resolution work.

(3) Any person who fails to comply with the directive given to be assigned to work pursuant to sub-section (2) may be dismissed by the Special Administration Group at any time.

(4) A person dismissed pursuant to sub-section (3) shall not receive any remuneration or benefit from such bank or financial institution. 88ṅa.
Nepal Rastra Bank Act, 2002

88ṅa. Notice and registration of resolution work: (1) Within two days of commencing the resolution work, the Special Administration Group shall give notice with the following details to each office of the concerned commercial bank or financial institution:-

(a) The date and time of taking control of and starting work on the concerned commercial bank or financial institution,

(b) The fact that the authority and responsibility of the previous authorized persons to conduct financial transactions or manage or give directions regarding the same have been revoked,

(c) The manner, time and place for depositors to submit their claims with the concerned commercial bank or financial institution,

(d) The manner, time and place for depositors to receive back their insured and secured deposits,

(e) The manner, time and place for secured creditors to submit claims receivable from the commercial bank or financial institution.

(2) The notice with details pursuant to sub-section (1) shall be published publicly so that the concerned parties of the commercial bank or financial institution can obtain information. Such notice shall also be published in a national daily newspaper every week for four weeks.

(3) The Special Administration Group shall send information regarding the fact that the concerned commercial bank or financial institution has been placed under resolution and the changes in the authorized officers and their authority to the Bank, the Office of the Company Registrar, the concerned stock exchange, the institution established for deposit insurance and security under prevailing law, and other concerned bodies, for record. 88cha. New balance sheet to be prepared: (1) The Special Administration Group shall prepare a new balance sheet showing the actual financial position of the commercial bank or financial institution placed under resolution pursuant to Section 88ka. on the following basis:-

(a) On the basis of the net realizable value of assets,

(b) By also adjusting the value of liabilities to be distributed on the basis of priority pursuant to Section 88jha.

(2) When preparing a new balance sheet pursuant to sub-section (1), the method of determining liabilities shall be as prescribed.

(3) The balance sheet prepared pursuant to sub-section (1) and detailed details thereof shall be submitted to the Bank as prescribed. 88chha.
Nepal Rastra Bank Act, 2002

88chha. May recommend for improvement of financial position of commercial bank or financial institution: (1) If, upon completion of the resolution process initiated in respect of a commercial bank or financial institution under this Chapter, it appears that overall financial stability or the system may be negatively affected, the Special Administration Group shall prepare a report stating the same, including that situation and the steps to be taken in the future, and submit it to the Bank.

(2) After receipt of the report pursuant to sub-section (1), if it appears that resolving such commercial bank or financial institution would negatively affect overall financial stability or the system, and if it appears that the financial position could improve if the Government of Nepal makes an investment in such commercial bank or financial institution, the Bank shall, together with its opinion, recommend the same to the Government of Nepal.

(3) If the Government of Nepal, upon the Bank's recommendation pursuant to sub-section (2), invests in a commercial bank or financial institution and its financial position improves, the Government of Nepal shall, within a maximum of five years from the date of improvement, sell its invested amount to the private sector through a bidding process and recover it. 88ja. Bridge institution or unit may be established: (1) If it appears appropriate to establish a bridge institution or unit pursuant to clause (kha) of sub-section (2) of Section 88ga. or otherwise to conduct resolution work, the Special Administration Group may request the Bank.
Nepal Rastra Bank Act, 2002

88ja. Bridge institution or unit may be established: (1) If it appears appropriate to establish a bridge institution or unit pursuant to clause (kha) of sub-section (2) of Section 88ga. or otherwise to conduct resolution work, the Special Administration Group may request the Bank. If such request is reasonable, the Bank may establish such bridge institution or unit or permit resolution work to be conducted.

(2) The institution or unit established pursuant to sub-section (1) shall be deemed to include the rights, liabilities, assets of the concerned commercial bank or financial institution, and any membership in payment, clearing or settlement systems obtained by such institution.

(3) Shareholders, creditors or any other persons of the commercial institution or unit established pursuant to sub-section (1) shall have no right of any kind over the assets or rights of the concerned commercial bank or financial institution.

(4) The work, duties and rights of the bridge institution or unit, and the remuneration and facilities to be received by the officers of such institution or unit, shall be as prescribed by the Bank.

(5) For the purpose of transferring assets and liabilities of the concerned commercial bank or financial institution to the bridge institution or unit or any other institution, none of the following shall be required:-

(a) To obtain consent of creditors or any related party,

(b) To complete the procedure prescribed by the prevailing company and securities laws, or

(c) To complete the procedure stipulated in any contract to which the concerned commercial bank or financial institution is a party. 88jha.
Nepal Rastra Bank Act, 2002

88jha. Priority of payment: (1) The amount received from the sale of assets of the concerned commercial bank or financial institution under resolution shall be used for payment to depositors, creditors, and other persons deemed by the Special Administration Group to be entitled to payment, and setting aside funds, on the basis of the following priority:-

(a) Expenses incurred by the Bank and the Special Administration Group for the implementation of the provisions of this Act, expenses for employee remuneration and facilities, fees of professional practitioners engaged in that regard, and other related expenses, including necessary expenses incurred in the resolution process,

(b) The amount up to the limit of the total approved claim amount of depositors, as per deposit insurance security under prevailing law, or if the deposit insurance security institution established by law has paid the depositor such amount, an amount equal thereto,

(c) Deposits remaining after payment pursuant to clause (kha),

(d) Approved claims of persons recognized as secured creditors by law.

(2) While making payment in the order mentioned in sub-section (1), if the amount is insufficient to pay the approved claim amount of any class, the amount shall be distributed proportionally among the claimants of the same class.

(3) When paying claims to depositors or secured creditors, payment shall be made equally without discrimination on any basis such as nationality, place of residence or jurisdiction.

(4) The approved claims of secured creditors who submit their claims in time shall be paid with first priority to the extent covered by the proceeds from the sale of the assets under security. The claim not covered by such security shall rank equally with the claims of other creditors.

(5) For the purpose of bearing the liability regarding financial compensation that may arise pursuant to sub-section (4) of Section 88ṭha., the Special Administration Group shall open a separate account and deposit two percent of the amount received from the sale of assets of such concerned commercial bank or financial institution.

(6) After making payment to depositors and secured creditors and setting aside funds under sub-section (5), the remaining amount shall be distributed proportionally by the liquidator appointed pursuant to sub-section (3) of Section 88ṇa., on the basis of priority prescribed under prevailing law, to the persons liable to pay taxes, duties, fees under prevailing law, other creditors or approved claimants of such commercial bank or financial institution, and shareholders or persons who have acquired ownership in any other manner. 88ña.
Nepal Rastra Bank Act, 2002

88ña. Effect after Special Administration Group takes control of bank or financial institution: (1) After the Special Administration Group takes control of a commercial bank or financial institution, any claim of depositors and creditors of such institution who are not entitled to receive payment under Section 88jha., and any action to establish a right over the assets of such institution in respect of any debt, shall be automatically stayed.

(2) Notwithstanding anything contained in sub-section (1), transactions with persons involved in clearing, payment and settlement systems, work related to asset transfer, and matters not related to the resolution process shall not be deemed to be stayed.

(3) For the purpose of taking a commercial bank or financial institution into the resolution process, unless a liability or security right over such commercial bank or financial institution was created six months prior to the formation of the Special Administration Group, no right over any asset, liability or security of such commercial bank or financial institution shall be deemed to have been created.

(4) Notwithstanding anything contained in sub-section (3), any type of liability or security created by the Special Administration Group over the assets of the commercial bank or financial institution under resolution shall not be deemed to have been obstructed.

(5) After the formation of the Special Administration Group, all rights of the shareholders or persons having any other type of ownership of the concerned commercial bank or financial institution shall be automatically suspended until the completion of the resolution process.

(6) In the case of a commercial bank or financial institution under resolution after the formation of the Special Administration Group, the provisions contained in the prevailing law relating to securities shall not apply. 88ṭa.
Nepal Rastra Bank Act, 2002

88ṭa. Actions prior to initiation of resolution proceedings become void: (1) The Special Administration Group may void transactions or transfers related to third parties that affect the assets of a commercial bank or financial institution in the following circumstances:-

(a) Transactions or agreements made prior to the start of the resolution process that are contrary to the interests of depositors or creditors of the concerned commercial bank or financial institution,

(b) Any transfers made by the commercial bank or financial institution without consideration to any shareholder, director, officer or their relatives up to five years before the date of commencement of the resolution process,

(c) Any transfers made by the commercial bank or financial institution without consideration to any third party up to three years before the date of commencement of the resolution process,

(d) Transactions completed by the commercial bank or financial institution up to three years before the date of commencement of the resolution process in a manner that results in comparatively lower returns for the institution or higher returns for the other party,

(e) Any act done up to five years before the date of commencement of the resolution process that is contrary to the interests or detrimental to the rights of the depositors of the commercial bank or financial institution,

(f) Transfer of property in the name of any person for the purpose of benefiting such person from the loan payable by the concerned commercial bank or financial institution up to six months before the date of commencement of the resolution process, or for the purpose of increasing the amount receivable by a creditor in the winding up process. Provided that the provision of this clause shall not apply to payments made against deposits not exceeding the amount covered by deposit insurance and security per deposit.

(2) The Special Administration Group may void transactions made with directors, officers or their close relatives of the commercial bank or financial institution up to one year before the date of commencement of the resolution process that are contrary to the interests of the depositors and creditors of the institution, or recover the amount thereof from them.

(3) Notwithstanding anything contained in sub-section (1) and (2), the Special Administration Group shall not void transactions made by the concerned commercial bank or financial institution in the ordinary course of its business, or where adequate and sufficient consideration has been exchanged, or transactions that had not been paid for prior to the institution entering resolution.

(4) A person who receives property from transactions or transfers voided pursuant to sub-sections (1) and (2) shall immediately return such property.
Nepal Rastra Bank Act, 2002

If such property is not in the possession of the person who received it, an amount equal to the value of such property shall be deposited with the concerned commercial bank or financial institution. In the case of a person who entered into such transaction with mala fide intention and, after the transaction is voided, does not immediately return the property or its equivalent value to the concerned commercial bank or financial institution, the claim against such person shall rank as that of a secured creditor.

(5) The Special Administration Group may, while conducting the resolution process, write to the concerned body to transfer any type of movable or immovable property or right. Upon such writing by the Special Administration Group, the concerned body shall enter, cancel or transfer such movable or immovable property or right in the name of the concerned commercial bank or financial institution.

(6) The Special Administration Group may, while conducting the resolution process, write to the concerned body to transfer any type of movable or immovable property or right. Upon such writing by the Special Administration Group, the concerned body shall enter, cancel or transfer such movable or immovable property or right in the name of the concerned commercial bank or financial institution.

(7) Where a Special Administration Group has been formed for the resolution of a commercial bank or financial institution and the process is ongoing, no person shall stop or cause to stop goods and services such as electricity, water, telephone, land, vehicles or other items and services provided prior to that solely on the ground that the amount for such items and services has not been received. In respect of payment for goods and services so received, the Special Administration Group shall pay the outstanding amount existing before entering the resolution process to the concerned service provider. 88ṭha. Other provisions relating to resolution: (1) Notwithstanding anything contained in the prevailing law, matters relating to a commercial bank or financial institution under resolution shall be governed by this Act.

(2) No person shall cause any obstruction, interference, disturbance or intervention in the right of access and control of the Special Administration Group. If any person does or causes to do such act, the Special Administration Group may request the concerned administration or police for necessary assistance.
Nepal Rastra Bank Act, 2002

If any person does or causes to do such act, the Special Administration Group may request the concerned administration or police for necessary assistance. Upon such request, the concerned body shall provide necessary security and assist in establishing the access and control of the Special Administration Group over the offices, assets, records, books of accounts and information technology systems of such commercial bank or financial institution.

(3) A party aggrieved by the work or action done by the Special Administration Group or the Bank under this Chapter may, for compensation, file a petition with the court within sixty days from the date the Special Administration Group submitted a report to the Bank or, if the Special Administration Group is dissolved for any reason, from the date of dissolution.

(4) The court may award reasonable financial compensation to the aggrieved party in the following circumstances:-

(a) If any act or action has been done exceeding the jurisdiction during the resolution,

(b) If the resolution process under this Act has not been completed,

(c) If the resolution action was taken without sufficient grounds and reasons.

(5) The Special Administration Group, while exercising its powers under this Act, shall do so in a transparent and fair manner, having regard to the interests of the concerned depositors and other claimants.

(6) The remuneration and facilities to be received by a person representing or assisting the Bank or the Special Administration Group in the course of the resolution process shall be as determined by the Bank.

(7) No depositor, shareholder or creditor shall bring any kind of lawsuit or proceeding against any act done by the directors and officers of the concerned commercial bank or financial institution in the course of implementing the decision of the Bank or the Special Administration Group to facilitate the resolution process.

(8) Notwithstanding anything contained in the prevailing law, the Bank may obtain from any government or private person, firm, company or entity any information and details relating to the resolution process of a commercial bank or financial institution. If the Bank so orders, the main managerial information, location of technology, and details including the sensitive and core functions performed by such commercial bank or financial institution shall be submitted to the Bank. It shall be the duty of the concerned person, firm, company or entity to provide any information requested by the Bank. 88ḍa.
Nepal Rastra Bank Act, 2002

It shall be the duty of the concerned person, firm, company or entity to provide any information requested by the Bank. 88ḍa. Final statement of resolution work to be submitted: (1) After completing the resolution work, or after the term of such group expires, or within fifteen days of the dissolution of such group for any reason, the Special Administration Group shall prepare a statement of the work and actions completed by it and the details of income and expenditure of the concerned commercial bank or financial institution, details of sources and uses of financial transactions, along with details of remaining assets and liabilities, have it examined, and submit a report including the same to the Bank. Such report shall also include necessary suggestions regarding the steps to be taken by the Bank in the future in respect of such institution.

(2) After receiving the report pursuant to sub-section (1), the Bank shall, considering the suggestions mentioned in the report, take necessary decision on whether to make arrangements for the operation of such commercial bank or financial institution pursuant to Section 88chha. or to file a petition in court for winding up pursuant to Section 88ṇa. 88ḍha. Exchange of mutual assistance: (1) The Special Administration Group may, with the prior approval of the Bank, request assistance from the concerned body of a foreign country as necessary in the course of proceeding with the resolution of a commercial bank or financial institution.

(2) The Special Administration Group may, with the prior approval of the Bank, proceed with necessary actions to assist on a reciprocal basis the proceedings being carried out in another country in relation to the resolution of a commercial bank or financial institution, or to recognize the work being done by the competent authority of another country.
Nepal Rastra Bank Act, 2002

When providing such assistance or recognizing such work, claimants shall be treated equally.

(3) Except in cases where confidentiality must be maintained and sensitive data must be protected, the Special Administration Group may, with the prior approval of the Bank, exchange information with the concerned agency of a foreign country regarding debt recovery, resolution plan, etc., of the commercial bank or financial institution under resolution.

(4) In relation to the resolution of a commercial bank or financial institution established in Nepal and having branches or offices abroad, or a commercial bank or financial institution established in a foreign country and having branches or offices in Nepal, the Bank and the institution providing deposit insurance security may also coordinate and exchange mutual assistance.

(5) The Bank and the institution providing deposit insurance security may exchange information or assistance regarding any event or problem affecting the commercial bank or financial institution under resolution, by mutual agreement with the concerned bodies of foreign countries regarding the resolution and its plan being carried out by them, upon their request for such information or assistance.

(6) Where any assistance from or coordination with the central bank, commercial bank or financial institution, or deposit insurance security institution of a foreign country is required on a reciprocal basis under this section, and if such assistance and coordination require government-level involvement, the Bank shall recommend to the Government of Nepal to make necessary arrangements in that regard. 88ṇa. May file petition for winding up: (1) If the resolution process initiated by the Bank in respect of a commercial bank or financial institution is completed, or if for any other reason, before such process

(4) A person who attempts to commit an offense under Section 95, or a person indirectly involved in committing such an offense, or a person who abets the commission of such an offense, or an officer of the concerned firm, company or institution who abets the commission of the offense, shall be liable to a punishment of up to half of the punishment prescribed for the principal accused. 97. Government of Nepal to be the plaintiff: A case relating to an offense referred to in Section 95 shall be filed with the Government of Nepal as the plaintiff, and such case shall be deemed to be included in Schedule-1 of the Muluki Criminal Procedure Code, 2074, as amended by the Act to Amend Some Nepal Acts Relating to the Muluki Code, 2075, which was transformed by the Act to Amend, Consolidate, Adjust and Repeal Some Nepal Laws, 2074. 98.
Nepal Rastra Bank Act, 2002

100. Punishment for violation of Bank's rules: (1) If any commercial bank or financial institution licensed by the Bank violates this Act or any rule or regulation made under this Act, or any order or direction issued by the Bank thereunder, the Bank may impose one or more of the following punishments on such commercial bank or financial institution:-
(a) To give a caution or written warning.
(b) To require the board of directors to submit a bond for taking corrective measures.
(c) To issue a written order to stop repeated violations, to refrain therefrom, and to take corrective measures.
(d) To suspend or terminate services provided by the Bank.
(e) To prohibit the distribution of dividends by the commercial bank or financial institution to its shareholders.
(f) To impose restrictions on deposits that may be accepted or loans that may be granted by the commercial bank or financial institution.
(g) To impose partial or full restrictions on the transactions of the commercial bank or financial institution.
(h) To suspend or revoke the license of the commercial bank or financial institution.

(2) If a director, officer or employee of a commercial bank or financial institution licensed by the Bank violates this Act or any rule or regulation made under this Act, or any order or direction issued by the Bank thereunder, or if such person acts against the interest of depositors or the general public, or fails to submit documents, details or data requested by the Bank or an inspection and supervision officer in the course of inspection and supervision within the specified time, the Bank may impose the following punishments on such director, officer or employee:-
(a) To give a caution or admonition.
(b) To place under suspension.
(c) To impose a cash fine of up to five hundred thousand rupees.
(d) To order the board of directors of the concerned commercial bank or financial institution to cease providing all facilities including salary and allowances.
(e) To order the board of directors of the concerned commercial bank or financial institution to remove a director from the post of director or to dismiss an officer or employee from service. Added by the Act to Amend Some Acts Relating to Prevention of Money Laundering and Promotion of Business Environment, 2080.100A. Punishment for violation of regulation: If a cooperative institution primarily engaged in savings and credit transactions, having a share capital of more than five hundred million rupees or an annual turnover equivalent to that amount, violates this Act or any order or direction issued by the Bank under the prevailing law, such cooperative institution or its director, officer or employee may be penalized under Section 99 or punished under Section 100.
Nepal Rastra Bank Act, 2002

101. Procedure for financial penalty and punishment: (1) While imposing a financial penalty or punishment under Section 99 and Section 100, the Bank shall adopt the following procedure:
(a) Before imposing the proposed punishment, the Bank shall give a written notice to the accused institution or person, mentioning the following matters and providing a period of fifteen days to submit a defense regarding the proposed penalty or punishment:-
(1) The nature of the offense,
(2) The amount of penalty or the proposed punishment that may be imposed according to the nature of the offense, and
(3) A brief description of the offense.
(b) The accused institution or person under clause (a) shall submit a written reply within fifteen days regarding whether they agree or disagree with the said accusation.
(c) If the Bank is satisfied with the submission of the accused institution or person expressing disagreement with the offense, the Bank may amend, limit or cancel such accusation.
(d) If the accused institution or person agrees with the offense or fails to submit a satisfactory reply, the Bank shall impose such penalty or punishment.
(e) The Bank may issue an order to deduct the penalty imposed under clause (d) from the account maintained by the concerned commercial bank or financial institution with the Bank.

(2) Cash fines received by the Bank pursuant to clause (e) of sub-section (1) shall be deposited in the General Reserve Fund.

(3) Notwithstanding anything contained in sub-section (1), no procedure of any kind shall be required to be followed when imposing punishment under clauses (a), (b), (c) and (d) of sub-section (1) of Section 100 and clauses (a) and (b) of sub-section (2) thereof. 102. Appeal lies: A commercial bank or financial institution, or its director, officer or employee dissatisfied with the punishment imposed by the Bank under Section 99 and Section 100 may appeal to the High Court, as amended by the Second Amendment. within thirty-five days from the date of receiving the punishment. Chapter-12

Miscellaneous

Repealed by the Payment and Settlement Act, 2075.103. 104. Collection of statistics: (1) The Bank may, on its own or from the Government of Nepal or other bodies, collect statistics required to achieve its objectives and perform its functions. For this purpose, the Bank may also seek cooperation from officials, persons, associations, institutions within or outside Nepal as omitted by the Act to Consolidate the Republic and Amend Some Nepal Laws, 2066. and international associations and institutions.

(2) The Bank may make necessary arrangements to coordinate and refine the system of collection, storage and distribution of statistics related to its sphere of work. 105.