Section 33
Application To Be Made To Obtain A License For Carrying On Banking And Financial Transactions
(1) A bank or financial institution wishing for carrying out banking or
financial transactions pursuant to this Act shall make an application to the Rastra Bank for obtaining a license along with as the prescribed by the Rastra Bank.
(2) The bank or financial institution shall also enclose the following details and documents with the application to be made pursuant to Sub-Section (1): –
(a) A copy of the Memorandum of Association and Articles of Association of the bank or financial institution along with a copy of the certificate of incorporation according to the prevailing laws,
(b) Particulars of an office building equipped with all infrastructures required by the bank or financial institution to carry out financial transactions, or, if such a building is to be rented, a copy of the lease agreement and the particulars of the building to be rented, including particulars that there are enough grounds for making available banking and financial services and facilities,
(c) Documents evidencing that the amount of the shares undertaken to be subscribed by promoters is paid to and deposited in the Rastra Bank,
(d) Byelaws Relating to the Conditions of Service and Facilities of the Employees, Financial Administration Byelaws; and Bye-laws relating to Write-off of Loans of the bank or financial institution,
(e) Principal place of business or if addresses of the branches have been identified, addresses thereof,
(f) Consent that the terms and conditions specified by the Rastra Bank for carrying out banking and financial transactions will be abided by,
(g) A business plan prepared by incorporating the business strategy of the bank or financial institution, the organizational structure suitable to the nature of the transaction to be carried out, the internal control and risk management process,
(h) Name-list of the Directors and office bearers of the bank or financial institution and the details stating that they are qualified to become Directors and office bearers according to this Act,
(i) Commitment to meet the minimum capital adequacy ratio set by the Rastra Bank from time to time as long as the bank or financial institution carries out banking and financial transactions,
(j) Commitment that the bank or financial institution will maintain an internal control system for proper management of all potential risks,
(k) Other details and documents specified by the Rastra Bank from time to time.
(3) In the case of a bank or financial institution to be established in joint venture in Nepal by any foreign bank or financial institution, the following details and documents shall also to be submitted to the Rastra Bank in addition to those matters as set forth in Sub-Section (2):-
(a) In the case of a bank or financial institutions of Class “A”, “B”, “C” and “D”, a letter of consent or approval given by the government of the concerned country or the central bank or the regulating agency established according to the laws of the concerned country of foreign bank or financial institution, for carrying out banking and financial transactions in Nepal by such a foreign bank or financial institution,
(b) Upon submission of an application to the Rastra Bank to incorporate a foreign bank or financial institution or upon obtaining permission from the Rastra Bank, if any matter to be submitted by such a foreign bank or financial institution under this Act had not be submitted, details of that matter,
(c) Other information and documents as demanded by the Rastra Bank.
(4) The Rastra Bank may, if while upon carrying out an inquiry into the documents and details so received pursuant to Sub-Sections (2) or (3), finds that any documents or details are not adequate or sufficient, ask for additional documents or details from the concerned bank or financial institution.
financial transactions pursuant to this Act shall make an application to the Rastra Bank for obtaining a license along with as the prescribed by the Rastra Bank.
(2) The bank or financial institution shall also enclose the following details and documents with the application to be made pursuant to Sub-Section (1): –
(a) A copy of the Memorandum of Association and Articles of Association of the bank or financial institution along with a copy of the certificate of incorporation according to the prevailing laws,
(b) Particulars of an office building equipped with all infrastructures required by the bank or financial institution to carry out financial transactions, or, if such a building is to be rented, a copy of the lease agreement and the particulars of the building to be rented, including particulars that there are enough grounds for making available banking and financial services and facilities,
(c) Documents evidencing that the amount of the shares undertaken to be subscribed by promoters is paid to and deposited in the Rastra Bank,
(d) Byelaws Relating to the Conditions of Service and Facilities of the Employees, Financial Administration Byelaws; and Bye-laws relating to Write-off of Loans of the bank or financial institution,
(e) Principal place of business or if addresses of the branches have been identified, addresses thereof,
(f) Consent that the terms and conditions specified by the Rastra Bank for carrying out banking and financial transactions will be abided by,
(g) A business plan prepared by incorporating the business strategy of the bank or financial institution, the organizational structure suitable to the nature of the transaction to be carried out, the internal control and risk management process,
(h) Name-list of the Directors and office bearers of the bank or financial institution and the details stating that they are qualified to become Directors and office bearers according to this Act,
(i) Commitment to meet the minimum capital adequacy ratio set by the Rastra Bank from time to time as long as the bank or financial institution carries out banking and financial transactions,
(j) Commitment that the bank or financial institution will maintain an internal control system for proper management of all potential risks,
(k) Other details and documents specified by the Rastra Bank from time to time.
(3) In the case of a bank or financial institution to be established in joint venture in Nepal by any foreign bank or financial institution, the following details and documents shall also to be submitted to the Rastra Bank in addition to those matters as set forth in Sub-Section (2):-
(a) In the case of a bank or financial institutions of Class “A”, “B”, “C” and “D”, a letter of consent or approval given by the government of the concerned country or the central bank or the regulating agency established according to the laws of the concerned country of foreign bank or financial institution, for carrying out banking and financial transactions in Nepal by such a foreign bank or financial institution,
(b) Upon submission of an application to the Rastra Bank to incorporate a foreign bank or financial institution or upon obtaining permission from the Rastra Bank, if any matter to be submitted by such a foreign bank or financial institution under this Act had not be submitted, details of that matter,
(c) Other information and documents as demanded by the Rastra Bank.
(4) The Rastra Bank may, if while upon carrying out an inquiry into the documents and details so received pursuant to Sub-Sections (2) or (3), finds that any documents or details are not adequate or sufficient, ask for additional documents or details from the concerned bank or financial institution.