Section 26
Powers To Carry On Banking Transactions
(1) An association or society may accept saving deposits from its member and lend loans to its members.
(2) An association or society has to obtain prior approval of the Nepal Rastra Bank in order to carry on other banking transactions including acceptance of deposits and disbursement of loans limited only to its members, other than the transactions mentioned in Sub-section (1). Such association or society has to observe the terms and conditions prescribed and directions given by the Nepal Rastra Bank.
(3) An association or society carrying on business after being registered prior to the commencement of this Act has to make arrangements for carrying on transactions pursuant to Sub-section (1) or Sub-section (2) within one year after the date of commencement of this Act.
(4) Notwithstanding anything contained elsewhere in this Act, associations or societies may jointly form a cooperative bank. (5) If an application, accompanied by a recommendation of the Nepal Rastra Bank, is made for the establishment of a bank pursuant to Sub-section (4), the Registrar may hold necessary inquiry and register such bank. (6) A bank registered and established pursuant to Sub-section
(5) may carry on the banking transactions under the Commercial Bank Act, 2031(1975) approved by the Nepal Rastra Bank; and the bank has to observe the terms and conditions prescribed by and the directions given from time to time by the Nepal Rastra Bank.
(2) An association or society has to obtain prior approval of the Nepal Rastra Bank in order to carry on other banking transactions including acceptance of deposits and disbursement of loans limited only to its members, other than the transactions mentioned in Sub-section (1). Such association or society has to observe the terms and conditions prescribed and directions given by the Nepal Rastra Bank.
(3) An association or society carrying on business after being registered prior to the commencement of this Act has to make arrangements for carrying on transactions pursuant to Sub-section (1) or Sub-section (2) within one year after the date of commencement of this Act.
(4) Notwithstanding anything contained elsewhere in this Act, associations or societies may jointly form a cooperative bank. (5) If an application, accompanied by a recommendation of the Nepal Rastra Bank, is made for the establishment of a bank pursuant to Sub-section (4), the Registrar may hold necessary inquiry and register such bank. (6) A bank registered and established pursuant to Sub-section
(5) may carry on the banking transactions under the Commercial Bank Act, 2031(1975) approved by the Nepal Rastra Bank; and the bank has to observe the terms and conditions prescribed by and the directions given from time to time by the Nepal Rastra Bank.