Section 50
Acts Not Allowed To Be Carried Out By Banks Or Financial Institutions
(1) A bank or financial institution shall not carry out or cause to be carried out any of the following acts:-
(a) To purchase and sell goods with an objective of business and to construct buildings and to purchase immovable land and except those are necessary for its own purposes,
(b) To disburse credit against security of its own shares,
(c) To provide any type of credit facility to the Directors, persons having subscribed one percent or more than that of the paid up capital, the Chief Executive, or a member of family of such persons, or the firm, company or organization having significant ownership or financial interest in any person, firm, company or organization having the authority to nominate or appoint a Director or a managing agent,
(d) To provide credit or facility exceeding per customer limit prescribed by the Rastra Bank from its capital fund to a single customer, company, companies or partnership firms of the same group and relevant persons,
(e) To provide any type of credits to any person, firm, company or institution on the guarantee of promoters, Directors, or the Chief Executive,
(f) To make investment in the securities of a bank or financial institution of class “A”, “B” and “C”, as classified by the Rastra Bank,
(g) To invest any amount more than the limit as prescribed by the Rastra Bank in share capital of any other institution,
(h) To create any type of monopoly or other type of restrictive practices in banking and financial transactions in collusion with banks or financial institutions,
(i) To commit any act with a view for creating an artificial hurdles in the competitive environment in the financial sectors with a intention to get undue advantage,
(j) To carry out any other acts which are prescribed by the Rastra Bank as the business not be carried out by a bank or financial institution.
(2) Notwithstanding anything contained elsewhere in this Act, nothing shall prevent from carrying out own banking and financial transactions or providing housing or other facilities for its own employees according to the prevailing Personnel Byelaws of the bank or financial institution, disbursing any credit against the collateral security of the bond issued by the Government of Nepal or the Rastra Bank, making available credits against the amounts deposited in any account or fixed deposits receipts or from making available credits and credit card facilities up to the prescribed limit to promoters, Directors, Chief Executive or shareholders having subscribed more than one percent of shares against the collateral security of their own fixed deposit receipts, and the bonds issued by Government of Nepal or the Rastra Bank.
(a) To purchase and sell goods with an objective of business and to construct buildings and to purchase immovable land and except those are necessary for its own purposes,
(b) To disburse credit against security of its own shares,
(c) To provide any type of credit facility to the Directors, persons having subscribed one percent or more than that of the paid up capital, the Chief Executive, or a member of family of such persons, or the firm, company or organization having significant ownership or financial interest in any person, firm, company or organization having the authority to nominate or appoint a Director or a managing agent,
(d) To provide credit or facility exceeding per customer limit prescribed by the Rastra Bank from its capital fund to a single customer, company, companies or partnership firms of the same group and relevant persons,
(e) To provide any type of credits to any person, firm, company or institution on the guarantee of promoters, Directors, or the Chief Executive,
(f) To make investment in the securities of a bank or financial institution of class “A”, “B” and “C”, as classified by the Rastra Bank,
(g) To invest any amount more than the limit as prescribed by the Rastra Bank in share capital of any other institution,
(h) To create any type of monopoly or other type of restrictive practices in banking and financial transactions in collusion with banks or financial institutions,
(i) To commit any act with a view for creating an artificial hurdles in the competitive environment in the financial sectors with a intention to get undue advantage,
(j) To carry out any other acts which are prescribed by the Rastra Bank as the business not be carried out by a bank or financial institution.
(2) Notwithstanding anything contained elsewhere in this Act, nothing shall prevent from carrying out own banking and financial transactions or providing housing or other facilities for its own employees according to the prevailing Personnel Byelaws of the bank or financial institution, disbursing any credit against the collateral security of the bond issued by the Government of Nepal or the Rastra Bank, making available credits against the amounts deposited in any account or fixed deposits receipts or from making available credits and credit card facilities up to the prescribed limit to promoters, Directors, Chief Executive or shareholders having subscribed more than one percent of shares against the collateral security of their own fixed deposit receipts, and the bonds issued by Government of Nepal or the Rastra Bank.