chhatramani/nepal_legal_acts_corpus_english huggingface dataset:
Banks and Financial Institutions Act, 2017

71. Provisions relating to valuation of assets and liabilities: (1) After obtaining in-principle approval for merger or amalgamation pursuant to section 70, such banks or financial institutions shall, by mutual agreement, appoint a valuer from among persons, firms, companies or institutions eligible at least to audit the bank, to evaluate their respective assets, liabilities and business, and shall inform Nepal Rastra Bank thereof. Provided that such valuation may be done by the banks or financial institutions before submitting the application to Nepal Rastra Bank.

(2) After obtaining in-principle approval for acquisition pursuant to section 70, the target institution shall cause the valuation of its assets, liabilities and business for the latest period to be done by an auditor appointed by its general meeting or by the board of directors under the authority of the general meeting.

(3) The acquiring institution may cause a detailed valuation of the assets and liabilities of the target institution to be done.

(4) If the work of the valuer appointed under sub-section (1) or (2) appears unreliable, Nepal Rastra Bank may order the concerned bank or financial institution to remove him/her and appoint another valuer.

(5) The service and facilities of the valuer shall be determined by the concerned bank or financial institution.

(6) The valuer shall value the assets, liabilities, net assets and overall business in accordance with established standards, basis and methods relating thereto.

(7) Nepal Rastra Bank may issue necessary directives regarding the method, basis and scope of valuation of assets and liabilities. 72.
Banks and Financial Institutions Act, 2017

72. Provisions relating to agreement: Except where ordered by Nepal Rastra Bank under this Act, banks or financial institutions that have received in-principle approval for merger, amalgamation or acquisition shall enter into an agreement regarding the merger, amalgamation or acquisition, mentioning the following matters:

(a) Provisions relating to protection of the interests of depositors, creditors and shareholders,
(b) Valuation method and settlement arrangements for the assets and liabilities of the bank or financial institution,
(c) Management of investments and transactions, details of inter-institutional ownership and inter-institutional transactions, details of guarantees or sureties, management of non-banking transactions, proper management of assets and liabilities,
(d) Details of the merger, amalgamation or acquisition process, time required and cost,
(e) Operating and management structure and list of directors,
(f) Provisions for harmonizing levels and service facilities of employees of the banks or financial institutions that have received in-principle approval for merger, amalgamation or acquisition, or of the acquiring and target institutions,
(g) Details of shareholders having substantial ownership and other shareholders,
(h) If merging or amalgamating to form a new bank or financial institution, the name, memorandum and articles of association, capital structure, restructuring and class of such institution,
(i) In the case of a foreign bank or financial institution, the consent letter of the relevant regulatory body,
(j) In the case of a foreign bank or financial institution, if it is to acquire the business of a bank or financial institution located in Nepal or to sell its entire business in Nepal, that matter,
(k) Grievance management system for stakeholders,
(l) The prevailing law and the procedure to be followed for compliance,
(m) Other necessary details prescribed by Nepal Rastra Bank. 73.
Banks and Financial Institutions Act, 2017

73. Provisions relating to approval: (1) Banks or financial institutions that have received in-principle approval to proceed with the merger, amalgamation or acquisition process shall, after passing a special resolution from their respective general meetings, jointly submit an application to Nepal Rastra Bank for final approval of the merger, amalgamation or acquisition, attaching the agreement under section 72.

(2) While conducting necessary inquiries upon the application under sub-section (1), if it is deemed necessary to request further information or documents from such bank or financial institution, Nepal Rastra Bank may request further information or documents.

(3) When conducting inquiries under sub-sections (1) and (2), Nepal Rastra Bank may grant final approval for the merger, amalgamation or acquisition of banks or financial institutions, imposing conditions or limits, after examining the environment for healthy competition in the financial sector, whether a monopoly or restrictive practice of any bank or financial institution may arise, the likely serious impact on the overall banking and financial structure, financial market and savers, and also conducting a fit and proper test of founders who will have substantial ownership in the merged entity.

(4) If it is not deemed appropriate to grant approval under sub-section (3), Nepal Rastra Bank shall, stating the reason, inform the concerned bank or financial institution within forty-five days.

(5) If institutions that have received approval under sub-section (3) face difficulty in complying with the provisions of this Act and directives issued by Nepal Rastra Bank solely because of the merger or acquisition, Nepal Rastra Bank may grant exemptions as prescribed, based on necessity and justification.

(6) Other provisions relating to merger, amalgamation or acquisition shall be as prescribed by Nepal Rastra Bank. 74. Business may be acquired: With prior approval of Nepal Rastra Bank, any branch office of a bank or financial institution, or any of its assets and business, may be acquired or transferred to another bank or financial institution by mutual agreement. Chapter-11

Voluntary Liquidation of Bank or Financial Institution

75.
Banks and Financial Institutions Act, 2017

Business may be acquired: With prior approval of Nepal Rastra Bank, any branch office of a bank or financial institution, or any of its assets and business, may be acquired or transferred to another bank or financial institution by mutual agreement. Chapter-11

Voluntary Liquidation of Bank or Financial Institution

75. Voluntary liquidation of bank or financial institution: (1) A bank or financial institution wishing to go into voluntary liquidation shall submit an application to Nepal Rastra Bank along with a plan for voluntary liquidation.

(2) Upon examining the application submitted under sub-section (1), if Nepal Rastra Bank is satisfied that such bank or financial institution, or the branch or office of a foreign bank or financial institution in Nepal, is capable of fully paying its debts and liabilities, Nepal Rastra Bank may grant in-principle approval for voluntary liquidation, with conditions.

(3) A bank or financial institution obtaining in-principle approval under sub-section (2) shall perform the following acts:

(a) Register that information with the Office of the Company Registrar within seven days of the date of obtaining in-principle approval,
(b) Send notice thereof to all depositors, creditors or concerned persons through a fast, efficient and reliable means within thirty days of the date of obtaining in-principle approval,
(c) Publish a notice thereof in a national daily newspaper within thirty days of the date of obtaining in-principle approval,
(d) Perform other acts as prescribed by Nepal Rastra Bank. 76.
Banks and Financial Institutions Act, 2017

76. Commencement of voluntary liquidation: (1) From the date Nepal Rastra Bank gives final approval for voluntary liquidation, the voluntary liquidation proceedings of the bank or financial institution shall be deemed to have commenced.

(2) A bank or financial institution that has obtained in-principle approval for voluntary liquidation under section 75 shall complete the following acts before obtaining final approval for voluntary liquidation from Nepal Rastra Bank:

(a) All deposits and liabilities must have been repaid or fulfilled within the prescribed time,
(b) Operations must be ceased and no new transactions undertaken,
(c) No other powers shall be exercised except those essential for the voluntary liquidation.

(3) In the course of performing acts under sub-section (2), Nepal Rastra Bank may issue necessary directives.

(4) If a person entitled to receive payment of amounts or other liabilities under clause (a) of sub-section (2) does not come to receive payment within the prescribed time, such amount shall be deposited in an account as directed by Nepal Rastra Bank.

(5) The approval given for voluntary liquidation shall not adversely affect the interests of the depositors and other creditors of such bank or financial institution.

(6) After the completion of the proceedings under this Act of a bank or financial institution that has gone into voluntary liquidation, such bank or financial institution shall submit the audit report thereof to Nepal Rastra Bank.

(7) Nepal Rastra Bank shall grant final approval for voluntary liquidation to a bank or financial institution that completes the acts under this section. Nepal Rastra Bank shall revoke the license of such bank or financial institution to conduct banking and financial transactions.

(8) A bank or financial institution that has gone into voluntary liquidation shall set aside the amount payable as deposits for which no claim has been immediately made, as directed by Nepal Rastra Bank. 77. Liability not affected: The dissolution of a bank or financial institution under this Chapter shall not affect the liability of any shareholder, director, chief executive, officer, employee or other person of such bank or financial institution under this Act or other prevailing law. Chapter-12

Compulsory Liquidation of Bank or Financial Institution

78.
Banks and Financial Institutions Act, 2017

83. Effect of Order Relating to Liquidation: (1) Where a court has ordered the commencement of compulsory liquidation proceedings of a bank or financial institution, the following matters shall be as follows from such order:

(a) If any limitation period under the prevailing law regarding any claim or right of the bank or financial institution has expired, such limitation period for such claim or right shall be automatically extended for six months from the date of the court order to commence liquidation proceedings of such bank or financial institution.

(b) Except as provided in clause (c), if the property or assets of the bank or financial institution are attached in any manner, or if there is collateral in respect of loans taken by the bank or financial institution, such attachment or collateral shall be automatically released.

(c) The business of accepting deposits and granting loans of the bank or financial institution shall automatically cease.

(d) Court proceedings pending in any court against the bank or financial institution shall be automatically stayed, and no court proceeding against such bank or financial institution may be initiated unless the court orders otherwise. Provided that, if any case is pending in the Supreme Court concerning such bank or financial institution, or if it is necessary to obtain necessary clearance from the Supreme Court, Nepal Rastra Bank shall submit a petition to that court.

(e) No interest or any other kind of additional charge shall accrue on the liability of the bank or financial institution.

(f) Transfer, mortgage, or entry and deletion of shares of such bank or financial institution shall not be permitted.
Banks and Financial Institutions Act, 2017

84. Inventory of Assets and Liabilities: (1) The Liquidator shall, without delay, prepare an inventory of the assets, liabilities, or contingent liabilities of the bank or financial institution that has undergone compulsory liquidation under this Act, submit one copy to Nepal Rastra Bank, and keep one copy at the concerned bank or financial institution.

(2) The inventory referred to in sub-section (1) shall include the following details:

(a) Liability towards depositors and creditors of the bank or financial institution,

(b) Details of all assets and all types of liabilities of the bank or financial institution and their estimated value,

(c) Contracts entered into by the bank or financial institution for receiving services,

(d) Significant transactions made by the bank or financial institution within the period of six months preceding the order for compulsory liquidation.

(3) The Liquidator shall update the inventory referred to in sub-section (1) on a quarterly basis and shall make it available for inspection by creditors upon request. 85. Power to Terminate Transactions: (1) The Liquidator may, within six months from the date of the court order to commence compulsory liquidation proceedings of a bank or financial institution, terminate the following transactions of such bank or financial institution:

(a) Any employment contract made by the bank or financial institution,

(b) Any contract made for services to which the bank or financial institution is a party,

(c) All functions and contracts entered into by the bank or financial institution in its capacity as a trustee,

(d) Any regular operations of the bank or financial institution or its branch offices as per necessity and circumstances,

(e) Any liability undertaken by the bank or financial institution without any limit,

(f) Other operations as specified by Nepal Rastra Bank.

(2) In respect of any transaction terminated under sub-section (1), no person shall be entitled to claim any additional amount or compensation of any kind other than the liability of the bank or financial institution to pay, deliver, or bear up to the date of such termination. 86.
Banks and Financial Institutions Act, 2017

86. Notice for Filing Claims: The Liquidator shall, within the timeframe specified by Nepal Rastra Bank, publish notice as follows for persons having any kind of claim against a bank or financial institution that has undergone compulsory liquidation under this Act to submit details of their claim and the means of receiving the amount they may be entitled to within one month from the date of the final publication or broadcast of the notice under this section:

(a) Publish the notice in at least one national daily newspaper in Nepali language and one in English language,

(b) Post the notice in a conspicuous place at the main place of business of the bank or financial institution and at each of its offices. 87. Liquidator May Accept or Reject Claims: (1) Within ninety days of receiving a claim under Section 86, the Liquidator shall, after making necessary inquiries, accept or reject such claim in whole or in part based on the evidence received, inform the claimant thereof, and also publish a public notice to that effect.

(2) A claimant whose claim has been partially accepted or rejected under sub-section (1) shall, within fifteen days of receiving such information, resubmit the claim including any additional evidence they may have.

(3) If it appears necessary to make any amendment to a claim submitted under sub-section (2), the Liquidator may amend it in part or in full.

(4) If any person is aggrieved by the decision of the Liquidator under sub-section (1) or (3), such claimant may appeal to the court within twenty-one days from the date of receiving notice of such decision. 88. Classification of Claims: (1) The Liquidator shall categorize the claims accepted, partially accepted, or rejected under Section 87 under separate headings accordingly.

(2) A claim partially accepted under sub-section (1) shall be included in the list of accepted claims to the extent accepted and the remainder in the list of rejected claims.

(3) While preparing the list of claims, the name, address, place of payment, date, amount, and details of whether there is any security securing the claim shall be clearly mentioned.

(4) If there is a dispute regarding any claim, such claim shall be kept in the list of disputed claims until a decision is made on it.

(5) Claims that are accepted but whose value is not determined shall be listed by the Liquidator under a list he specifies.

(6) Claims of secured creditors shall be classified separately.

(7) Accepted claims shall be listed in the order of priority of payment under this Act. 89.
Banks and Financial Institutions Act, 2017

89. Meeting of Creditors: (1) Creditors of a bank or financial institution for which compulsory liquidation proceedings have commenced may form a meeting of creditors for mutual discussion and agreement.

(2) Subject to the conditions and directions prescribed by Nepal Rastra Bank, the Liquidator of a bank or financial institution undergoing compulsory liquidation may, as necessary, hold negotiations and reach agreements with the creditors and debtors of such bank or financial institution. 90. Liquidation Plan: (1) Within thirty days of the completion of the classification of claims under Section 88, the Liquidator shall prepare a detailed plan for the liquidation process of such bank or financial institution, submit it to the court for approval, and inform Nepal Rastra Bank thereof.

(2) The liquidation plan submitted under sub-section (1) shall include the following matters:

(a) Detailed description, nature, and implication of the assets or liabilities of the bank or financial institution,

(b) Details of the past and projected income and expenditure of the bank or financial institution,

(c) Detailed information regarding continuing or terminating the current financial operations of the bank or financial institution,

(d) Decisions or orders made by the court,

(e) Details of actions taken to claim compensation for offences or other illegal acts committed by directors, office bearers, or employees of the bank or financial institution,

(f) Detailed information including classification of claims and payment priority,

(g) Plan for sale and liquidation of the main assets or groups of assets of the bank or financial institution,

(h) Schedule of liabilities of the bank or financial institution and potential payments to be made to depositors and creditors within the next ninety days,

(i) Costs and expenses of the compulsory liquidation,

(j) Other details as specified by Nepal Rastra Bank.

(3) The Liquidator shall update the liquidation plan referred to in sub-section (1) on a quarterly basis.

(4) After the liquidation plan is approved by the court, it shall be made available for inspection to the creditors of the bank or financial institution whose claims are mentioned in the plan.

(5) Notwithstanding anything contained elsewhere in this Act, a bank or financial institution that has undergone compulsory liquidation shall not be recapitalized by investing in it in whole or in part. 91. Immediate Advance to Depositors: (1) Notwithstanding anything contained elsewhere in this Chapter, the Liquidator may, by way of advance, distribute up to a maximum of one hundred thousand rupees per account to the depositors of a bank or financial institution undergoing compulsory liquidation, subject to adjustment at the time of distribution of deposit.

(2) The advance given under sub-section (1) shall be adjusted at the time of payment under Section 94. 92.
Banks and Financial Institutions Act, 2017

92. Power to Sell Assets: Subject to the directions given by Nepal Rastra Bank, the Liquidator may sell or cause to be sold by auction all assets of a bank or financial institution undergoing compulsory liquidation, including assets provided as security for accepted claims of creditors, as follows:

(a) Securities, foreign currency, or other easily marketable assets at the place of transaction,

(b) Permitting creditors holding collateral to sell securities, foreign currency, or other assets given as loan security that are easily marketable, by the creditors themselves,

(c) Selling assets by any other means if the Liquidator is of the opinion that a reasonable price cannot be obtained by auction,

(d) Making other arrangements as specified by Nepal Rastra Bank. 93. Notice of Settlement of Claims: The Liquidator shall, for settling claims according to the liquidation plan under Section 90, publish and broadcast a public notice stating the nature, quantum, and payment priority of the claims. 94. Priority of Payment: (1) A bank or financial institution that has undergone compulsory liquidation shall pay its liabilities in the following order of priority:

(a) Expenses incurred for the compulsory liquidation,

(b) The amount of deposit insurance coverage as per the prevailing law, up to the limit of the total accepted claim amount of the depositor, or an amount equivalent to such amount if it has been paid to the deposit insurance institution established under the law on deposit amount,

(c) The remaining deposit after payment under clause (b),

(d) Amounts payable as salary, allowances, and other liabilities to the employees of the bank or financial institution,

(e) Amounts payable to the Government of Nepal, local bodies, or Nepal Rastra Bank,

(f) Amounts payable as fees or assessments due to other banks or financial institutions,

(g) Amounts payable to other creditors or for other claims,

(h) Shareholders as per the prevailing law.

(2) Notwithstanding anything contained elsewhere in this Chapter, if, during sale and distribution under Section 94, a creditor applies to accept any unsold asset in satisfaction of the amount receivable by him from the bank or financial institution, the Liquidator may transfer such asset to such creditor, subject to the criteria for valuation determined by Nepal Rastra Bank.

(3) Notwithstanding anything contained elsewhere in this Chapter, if any asset is held as security for secured creditors, such asset shall be used only to satisfy their liabilities. 95.
Banks and Financial Institutions Act, 2017

95. Unclaimed Goods or Amounts: If a person does not come to collect his amount or goods within the specified time after notice under this Chapter for collection of his amount or goods according to the details of claims or liabilities, such goods or amounts shall be kept in the custody of the Liquidator or another agency as directed by Nepal Rastra Bank. 96. Decision of Liquidation: (1) For the liquidation of a bank or financial institution that is under compulsory liquidation under this Chapter and whose license has been cancelled by Nepal Rastra Bank, the Liquidator shall, after completing the liquidation work, submit a petition to the court along with details of such work.

(2) If the Liquidator petitions the court under sub-section (1), the court may, after making necessary inquiries, decide that such bank or financial institution has been compulsorily liquidated.

(3) The Liquidator shall publish the decision given by the court under sub-section (2) at least once each in one national daily newspaper in Nepali language and one in English language, and shall also mention the main subject matter of the court order and the liquidation report in such publication.

(4) After the notice is published under sub-section (3), the Liquidator shall request the Company Registrar to remove the name of such bank or financial institution from the register of companies, and the Company Registrar shall accordingly publish a notice in the Nepal Gazette that the name of such bank or financial institution has been removed from the company register.

(5) After the notice of removal of the name of the liquidated bank or financial institution under sub-section (4) is published in the Nepal Gazette, the compulsory liquidation proceedings of such bank or financial institution shall terminate, and such bank or financial institution shall be deemed to have been duly dissolved.

(6) The compulsory liquidation of a bank or financial institution shall not affect any liability of any director, chief executive, office bearer, employee, shareholder, or other person of such bank or financial institution under this Act or the prevailing law. 97. Compulsory Liquidation of Banks or Financial Institutions Operating in More Than One Country: The process of compulsory liquidation of a branch of a bank or financial institution operating in more than one country shall be as determined by Nepal Rastra Bank having regard to international practices. Provided that the compulsory liquidation of a bank or financial institution operating as a subsidiary of a bank or financial institution operating in more than one country shall be in accordance with this Chapter. 98.
Banks and Financial Institutions Act, 2017

Such person shall not be entitled to any compensation upon retirement or facilities provided in the employee regulations and shall be deemed ineligible to be appointed in any bank or financial institution licensed by Nepal Rastra Bank for a period of five years.

(d) While taking action under clause (c), if the director, office bearer, or other employee subject to such action does not receive the notice of action or, having received the notice, does not submit an explanation, Nepal Rastra Bank may give information about the action taken through a public notice,

(e) If any bank or financial institution has taken or been given salaries, allowances, and other facilities contrary to this Act or abnormally, recover the entire amount of such service facilities together with interest as per the prevailing law from the person giving such service facilities,

(f) Order the concerned bank or financial institution to write to the professional body with which the director, office bearer, or employee of the bank or financial institution is associated, for action.

(4) If it appears that the amount payable by a bank or financial institution is payable due to the negligence or bad faith of any director, office bearer, or employee, Nepal Rastra Bank may order that such amount be recovered from such director, office bearer, or employee.

(5) Within thirty-five days from the date of receiving notice of an order given under sub-section (4), such director, office bearer, or employee shall personally pay or deposit such amount.

(6) If not paid or deposited within the period under sub-section (5), it shall be recovered as a government due from the account in any bank or financial institution in the name of such director, office bearer, or employee or his family, or from any movable or immovable property of such person or his family.

(7) If Nepal Rastra Bank, while performing regulation, inspection, supervision, or any other work under this section, publishes or broadcasts a notice publicly, the cost incurred in publishing or broadcasting such notice shall be borne by such bank or financial institution. 100.
Banks and Financial Institutions Act, 2017

100. Power to Impose Penalty: (1) A bank or financial institution that fails to provide information required to be given, or fails to submit documents and details required to be submitted within the specified time, or fails to make available documents, details, data, or records requested by Nepal Rastra Bank or any official deputed by it for monitoring, inspection, or supervision within the specified period, in accordance with this Act or the Nepal Rastra Bank Act or the rules, regulations, directions, or orders issued thereunder, may be subject to a penalty by Nepal Rastra Bank as follows:

(a) Up to two weeks after the deadline, one hundred thousand rupees per day,

(b) Up to one month after the deadline, one hundred and twenty-five thousand rupees per day,

(c) After the period in clause (b), at any time, one hundred and fifty thousand rupees per day.

(2) If any founder, shareholder, director, chief executive, office bearer, employee, or any other concerned person of a bank or financial institution violates this Act or the Nepal Rastra Bank Act or the rules, regulations, directions, or orders or conditions issued thereunder, or fails to implement a direction given by Nepal Rastra Bank under clause (b) of sub-section (3) of Section 99, Nepal Rastra Bank may, depending on the nature and seriousness of the violation, impose a penalty of up to ten lakh rupees.

(3) If the amount of penalty imposed under sub-section (1) is not paid to Nepal Rastra Bank by the bank or financial institution within three days from the date of receiving notice of the decision, it shall be recovered by deducting from the amount in the account opened by such bank or financial institution with Nepal Rastra Bank.

(4) The cash penalty received by Nepal Rastra Bank under sub-sections (1) and (2) shall be deposited into the Government Fund. 101.
Banks and Financial Institutions Act, 2017

101. Procedure for Action: (1) Unless otherwise provided in this Act, while taking action under Section 99 or imposing a penalty under Section 100, Nepal Rastra Bank shall adopt the following procedure:

(a) Before taking proposed action or imposing a penalty, a written notice shall be given to the accused bank or financial institution or person, specifying the nature of the act committed, a brief description thereof, and the amount of penalty or proposed action that may be imposed accordingly, and granting a period of seven days to submit a defense,

(b) The concerned bank or financial institution or person shall submit its defense in writing within seven days from the date of receiving the written notice under clause (a),

(c) If the written defense submitted under clause (b) appears reasonable, Nepal Rastra Bank may amend, limit, or drop such accusation,

(d) If the written defense submitted under clause (b) does not appear satisfactory, Nepal Rastra Bank shall take action under Section 99 or impose a penalty under Section 100 against such bank or financial institution or person.

(2) The other procedures to be adopted while taking action or imposing a penalty by Nepal Rastra Bank under this Act shall be as prescribed by Nepal Rastra Bank. 102.
Banks and Financial Institutions Act, 2017

103. Offences: (1) If any person does any of the following acts contrary to this Act or the rules, regulations, directions, orders, or conditions or limits issued under this Act, he shall be deemed to have committed an offence under this Act:

(a) Conducting banking and financial transactions without obtaining a license,

(b) Obtaining a license for banking and financial transactions by providing false or incorrect details,

(c) Conducting banking and financial transactions contrary to the terms and conditions of the license for such transactions,

(d) Engaging in foreign exchange transactions without a license,

(e) Providing credit or making other investments contrary to this Act,

(f) Committing irregularities while providing credit, valuing collateral, recovering loans, or in any related work, or conducting a fraudulent valuation while taking collateral, auctioning property held as collateral, or acquiring and selling non-banking assets,

(g) Committing irregularities by any director, office bearer, employee, or other person during merger, acquisition, liquidation, or audit,

(h) Attempting to commit or in any way aiding the commission of an offence under clauses (a) to (ch).

(2) A director, office bearer, or employee holding office at the time of the commission of an offence under sub-section (1), or any other person aiding in the offence, shall be deemed to have committed such offence himself, unless it is proved that such offence was committed without his consent or that he made every possible effort to prevent such offence.

(3) If any office bearer or employee of a branch of a foreign bank transfers any asset of such branch to another country, approves such transfer, authorizes such transfer, or does any act that facilitates or amounts to such transfer, except in the ordinary course of business of the branch, he shall be deemed to have committed an offence under this Act. 104.
Banks and Financial Institutions Act, 2017

104. Punishment: (1) A person committing the following offences shall be punished as follows:

(a) For an offence under clause (a) of sub-section (1) of Section 103, confiscation of the proceeds, a fine of up to three times the proceeds, and imprisonment for up to five years,

(b) For an offence under clause (b) of sub-section (1) of Section 103, if there is proceeds, confiscation thereof, a fine of up to twice the proceeds, and imprisonment for up to two years,

(c) For an offence under clause (d), (e), (f), or (g) of sub-section (1) of Section 103, if there is proceeds, confiscation thereof, a fine equal to the proceeds, and imprisonment for up to one year,

(d) For an offence under clause (h) of sub-section (1) of Section 103, if there is proceeds, confiscation thereof, and half the punishment applicable to the main person.

(2) For the purpose of sub-section (1), while determining the proceeds, the entire amount involved in the transaction shall be considered.

(3) When imposing a fine under clauses (a) to (d) of sub-section (1), if the proceeds are known, the fine shall be according to such proceeds; if the proceeds are not known, the fine shall be from ten lakh rupees to fifty lakh rupees.

(4) A person committing an offence under sub-section (3) of Section 103 shall be liable to a fine according to the proceeds and imprisonment for up to five years.

(5) If an offence under Section 103 is committed by a firm, company, or institution, the concerned director, office bearer, employee, or related person of such firm, company, or institution shall be punished under this section; and if such concerned person cannot be ascertained, the head of such firm, company, or institution shall be punished accordingly.

(6) If a person committing an offence under Section 103 is found to have kept or hidden property in his own name, the name of his family, relatives, or any other person, such amount and the property acquired from it shall also be confiscated. 105. Appeal: (1) A bank or financial institution or its director, office bearer, shareholder, or employee who is aggrieved by an action taken under Section 99 or a penalty imposed under Section 100 by Nepal Rastra Bank may appeal to the court within thirty-five days from the date of receiving the order of such action. Provided that, when a shareholder appeals against

(2) The notice to take the amount pursuant to Sub-section (1) shall be published by the bank or financial institution in a national daily newspaper once every five years.
Banks and Financial Institutions Act, 2017

Provided that, when a shareholder appeals against

(2) The notice to take the amount pursuant to Sub-section (1) shall be published by the bank or financial institution in a national daily newspaper once every five years. The bank or financial institution shall also keep the detailed particulars thereof on its website.

(3) If the amount pursuant to Sub-section (1) is not claimed or taken within twenty years, such amount shall be deposited in the Banking Development Fund of Nepal Rastra Bank and used for banking development. 113. Deposit may be set off or forfeited: If the deposit amount kept in a bank or financial institution has been deposited from a loan transaction conducted by keeping collateral or guarantee, or from an amount misappropriated from the treasury of the Government of Nepal or an entity owned by the Government of Nepal, or from the amount of loss or damage of an offence under the prevailing law, or from collection made from terrorist, banking, financial offence or organized offence related activities, then such collateral or guarantee, or the amount of the misappropriated treasury may be set off or forfeited from such deposit in accordance with the prevailing law. 114. To be recovered from director: If any director is found to have taken any amount or goods for personal benefit in the course of the business of the bank or financial institution, the bank or financial institution shall recover such amount or goods from such director. 115. Not entitled to make claim: If any person, knowingly or having sufficient reason to believe that a director is about to engage in any transaction for his/her personal interest or to cause loss or damage to the bank or financial institution, still conducts any transaction with such director or his/her representative, such person shall not be entitled to make any claim against the bank or financial institution in respect of such transaction. 116. Government of Nepal to be plaintiff: (1) A case relating to an offence referred to in Section 103 shall be filed with the Government of Nepal as plaintiff, and such case shall be deemed to be included in Schedule-1 of the prevailing Government Cases Act.

(2) Any person may file a complaint, in writing or orally, with evidence, at the nearest police office against any director, office bearer, employee, debtor or any other person committing an offence under Section 103. While filing such complaint, it shall not be necessary to mention the name.

(3) Nepal Rastra Bank shall provide necessary assistance in all matters such as investigation, inquiry, filing of the case and prosecution of an offence under Section 103. 117.
Banks and Financial Institutions Act, 2017

While filing such complaint, it shall not be necessary to mention the name.

(3) Nepal Rastra Bank shall provide necessary assistance in all matters such as investigation, inquiry, filing of the case and prosecution of an offence under Section 103. 117. Provision relating to transparency: (1) A bank or financial institution or a branch of a foreign bank or financial institution shall publish a periodic report on its financial condition and risk status at least every three months for transparency relating to transactions.

(2) The minimum matters to be included in the report pursuant to Sub-section (1) shall be as prescribed by Nepal Rastra Bank. 118. Provision relating to consumer interest protection: For the purpose of protecting consumer interest, Nepal Rastra Bank may perform the following functions:-

(क) To ensure that licensed banks or financial institutions are conducting their financial transactions in accordance with law and providing financial services to consumers in a transparent and fair manner,

(ख) To coordinate on matters of consumer interest protection in the financial sector,

(ग) To collect necessary information to bring improvement in consumer interest protection in the banking sector and to bring financial literacy. 119. Exemption and facility: (1) No instrument of mortgage of movable or immovable property up to a maximum of ten lakh rupees provided by a bank or financial institution to a Nepali citizen or an entity established under the prevailing law for agriculture, cottage and small industries, irrigation, hydropower generation or any other business prescribed by the Government of Nepal shall require registration.

(2) The term of loan and deposit shall be as determined by the bank or financial institution.

(3) No revenue stamp fee shall be levied on any instrument relating to a bank or financial institution. 120. Expense management: Nepal Rastra Bank may give necessary directives regarding the preliminary, establishment, administrative, business, management and other expenses of a bank or financial institution. 121. Asset details to be submitted: Every director, office bearer and chief executive of a bank or financial institution shall prepare and submit to the concerned bank, within sixty days of the end of each fiscal year, a statement of all movable and immovable assets and liabilities held in his/her own name and in the name of his/her family members, and shall inform Nepal Rastra Bank thereof. While submitting such statement, the source of income shall also be disclosed. 122.
Banks and Financial Institutions Act, 2017

While submitting such statement, the source of income shall also be disclosed. 122. Loan, liability and interest in collateral may be sold or purchased: Notwithstanding anything contained in the prevailing Nepal law, unless otherwise provided in the loan agreement, the loan given by a bank or financial institution to any person, or the liability accepted by it, and the interest in the movable or immovable property received or given as collateral for the security thereof, may be sold or purchased. 123. Settlement of disputes: (1) If any dispute arises between banks or financial institutions, such dispute shall be settled by mutual agreement.

(2) If the dispute cannot be settled by mutual agreement pursuant to Sub-section (1), Nepal Rastra Bank shall settle the dispute by adopting a mediation process or other dispute resolution measures under the prevailing law.

(3) The decision made by Nepal Rastra Bank pursuant to Sub-section (2) shall be final. 124. Not to be held liable for acts done in good faith: (1) No office bearer or employee of Nepal Rastra Bank, a bank or a financial institution shall be held personally or collectively liable for any act done in good faith in accordance with this Act, the Nepal Rastra Bank Act, or the rules, regulations, orders or directives made thereunder.

(2) If any suit is filed against Nepal Rastra Bank, a bank or a financial institution or its office bearer in relation to any loss or damage caused or likely to be caused by anything done or attempted to be done in good faith in the course of complying with this Act, the Nepal Rastra Bank Act, or the rules, regulations, orders or directives made thereunder, the expenses of such suit shall be borne by the concerned institution. Provided that, the concerned person shall be liable for any act done out of malice, negligence or bad faith, and the expenses of any suit filed in relation to such matter shall not be borne by Nepal Rastra Bank or the bank or financial institution. 125. Acts not to be invalidated: No act done by a director or the board of directors shall be invalidated merely by reason of any irregularity in the appointment of a director or the formation of the board of directors of a bank or financial institution, or by reason of the vacancy in the office of any director. 126.
Banks and Financial Institutions Act, 2017

126. Study committee and sub-committee may be formed: (1) Nepal Rastra Bank may form an expert study committee consisting of representatives and experts from Nepal Rastra Bank, banks or financial institutions and concerned bodies to study and submit a report on the overall aspects of banking and financial law, loan recovery, stability of the financial sector and contemporary reform of the financial system.

(2) Nepal Rastra Bank may form sub-committees as necessary for the purpose of Sub-section (1).

(3) The functions, duties, powers and facilities of the study committee pursuant to Sub-section (1) or the sub-committee pursuant to Sub-section (2) shall be as prescribed by Nepal Rastra Bank. 127. Taking oath: (1) Every director, office bearer, chief executive or employee appointed in a bank or financial institution shall, before commencing the responsibilities of his/her office, take an oath of office and secrecy in the format prescribed in the Schedule.

(2) The oath pursuant to Sub-section (1) shall be taken by the Chairperson before Nepal Rastra Bank, by the directors and chief executive before the Chairperson, and by other office bearers and employees before the chief executive or an office bearer designated by him/her. 128. Amendment of memorandum and articles of association: Notwithstanding anything contained in the prevailing law, any amendment to the memorandum and articles of association of a bank or financial institution shall not be effective until approved by Nepal Rastra Bank. 129. To be in accordance with this Act: (1) Matters written in this Act, or in the rules, regulations, procedures made under this Act, or in the orders or directives given under this Act or the rules made under this Act, shall be as so provided, and other matters shall be in accordance with the Nepal Rastra Bank Act and other prevailing laws.

(2) The regulation, inspection and supervision, and liquidation related work of banks or financial institutions established under this Act shall be in accordance with the Nepal Rastra Bank Act. 130. Removal of difficulties: (1) If any difficulty arises in implementing any provision of this Act, Nepal Rastra Bank may, with the approval of the Government of Nepal, issue necessary orders to remove such difficulty.

(2) While issuing an order to remove difficulties pursuant to Sub-section (1), the reason and justification for doing so shall also be mentioned. 131. May issue orders or directives: Nepal Rastra Bank may issue orders or directives to banks or financial institutions as necessary, subject to this Act or the rules or regulations made under this Act. 132.
Banks and Financial Institutions Act, 2017

131. May issue orders or directives: Nepal Rastra Bank may issue orders or directives to banks or financial institutions as necessary, subject to this Act or the rules or regulations made under this Act. 132. May make rules or regulations: (1) For the implementation of this Act, Nepal Rastra Bank may issue and enforce rules or regulations as necessary on any matters it deems necessary.

(2) Rules made by Nepal Rastra Bank pursuant to Sub-section (1) shall be effective only after approval by the Government of Nepal. 133. Power to make by-laws and procedures: (1) Subject to the conditions, limits and standards prescribed by Nepal Rastra Bank under this Act or the rules made under this Act, the board of directors of a bank or financial institution may, with the approval of Nepal Rastra Bank, make by-laws on the following matters for the systematic conduct of institutional, administrative and business transactions:-

(क) In relation to appointment, promotion, transfer, dismissal, salary, allowance, gratuity, pension, leave, conduct, discipline and terms of service of employees and the formation of such service,

(ख) In relation to the financial administration of the bank or financial institution,

(ग) In relation to loan write-off,

(घ) In relation to other matters prescribed by Nepal Rastra Bank from time to time.

(2) Apart from the matters referred to in Sub-section (1), a bank or financial institution may make procedures as necessary on the following matters:-

(क) In relation to the procedure for meetings of the board of directors and general meetings,

(ख) In relation to the delegation of authority by the board of directors to directors, chief executive, office bearers or employees,

(ग) In relation to the terms of contracts made on behalf of the bank or financial institution,

(घ) In relation to the procedure for the use of the seal of the bank or financial institution,

(ङ) In relation to the valuation of collateral security to be kept while granting loans or non-banking assets to be sold by auction,

(च) In relation to other acts to be performed by the bank or financial institution under this Act,

(छ) In relation to document shredding,

(ज) In relation to other matters prescribed by Nepal Rastra Bank from time to time. 134. Repeal and saving: (1) The Banks and Financial Institutions Act, 2063 is hereby repealed.

(2) All acts done under the Act repealed pursuant to Sub-section (1) shall be deemed to have been done under this Act.