: (1) Notwithstanding anything else written in this Act, a co-operative bank that violates the conditions prescribed by Nepal Rastra Bank while granting license, order issued from time to time or any instruction given during inspection, supervision or regulation shall be punished as follows: Can be punished as follows:-
(a) to warn or give a written warning,
(b) to report to the Board of Directors for taking corrective action,
(c) issue written orders to cease, desist from and take corrective action against repeated contraventions,
(d) to impose a partial or total restriction on business,
(e) Suspension of the license of the institution or cancellation of the license.
(2) If the director or employee of the cooperative bank violates the order, instruction or license condition issued by Nepal Rastra Bank, fails to provide the requested documents, details, statistics or records within the specified time during inspection and supervision, or acts contrary to the interest of the savers or members, Nepal Rastra Bank can punish as follows:-
(a) to warn or admonish,
(b) to put under suspension,
(c) to impose a fine which may extend to five lakhs of rupees,
(d) Ordering the Committee to withhold all benefits including salaries, allowances, etc.,
(e) If such a person is a director, to remove him from his position or if he is an employee, to order the relevant committee to take action in accordance with the law regarding the conditions of service of such employee.
(3) If any person is punished under this section, he shall be given a reasonable opportunity to submit an explanation.