Section 60
Audit Committee
(1) The Board of Directors of a bank or financial institution shall constitute an Audit Committee comprising three members under the convenorship of a non-executive Director.
(2) The Chairperson of a bank or financial institution, convener of the sub-committee and the Chief Executive shall not work in the audit committee referred to in Sub-Section (1).
(3) Members of the committee referred to in Sub-Section (1) shall not be entitled to be engaged in collecting deposits, disbursing credits, investing in securities, and making decisions in any daily transaction that requires for making expenses out of the approved budget.
(4) Except where a meeting has been called by the Board of Directors, meeting of the Audit Committee shall normally be held once in three months.
(5) Procedures of the meetings of the Audit Committee shall be as determined by the committee itself.
(2) The Chairperson of a bank or financial institution, convener of the sub-committee and the Chief Executive shall not work in the audit committee referred to in Sub-Section (1).
(3) Members of the committee referred to in Sub-Section (1) shall not be entitled to be engaged in collecting deposits, disbursing credits, investing in securities, and making decisions in any daily transaction that requires for making expenses out of the approved budget.
(4) Except where a meeting has been called by the Board of Directors, meeting of the Audit Committee shall normally be held once in three months.
(5) Procedures of the meetings of the Audit Committee shall be as determined by the committee itself.
Bank And Financial Institution Act, 2073 (2017)
Chapter - 2
Section 3: Incorporation Of Banks Or Financial InstitutionsSection 4: Prior-approval To Be Obtained To Incorporate Banks Or Financial InstitutionsSection 7: Power To Refuse To Grant Prior ApprovalSection 5: Prior Approval To Be Obtained For Incorporation Of Bank Or Financial Institution In Foreign InvestmentSection 6: Approval To Be Obtained To Open Branch Office Of Bank Or Financial Institution
Chapter - 3
Section 8: ProspectusSection 9: Allotment Of SharesSection 10: Transactions Of SecuritiesSection 11: Provisions Relating To The Sale Of Shares Or Pledging Of SecuritiesSection 12: Prohibition On Transaction Of SecuritiesSection 13: Prohibition On Buy Back By Bank Or Financial Institution Of Its’ Own Shares
Chapter - 4
Section 14: Constitution Of Board Of DirectorsSection 17: Qualifications Of Independent DirectorSection 18: Disqualification Of DirectorsSection 19: Ineligibility To Remain In Office Of DirectorSection 20: Provision Regarding A Person Holding Constitutional PositionSection 21: Meetings Of Board Of DirectorsSection 22: Functions, Duties And Powers Of Board Of DirectorsSection 24: Details Of Directors To Be CollectedSection 25: Information Of Director And RecordSection 28: Allowances And Facilities Of DirectorSection 29: Appointment Of Chief Executive And Terms And Conditions Of ServiceSection 30: Functions, Duties And Powers Of Chief ExecutiveSection 15: Term Of Office Of The DirectorsSection 16: Qualifications Of DirectorSection 23: Responsibility And Accountability Of DirectorSection 26: Power To Constitute Sub-committeesSection 27: Delegation Of Power
Chapter - 5
Section 31: Prohibition On Carrying Out Banking Or Financial Transactions By Anyone Other Than Banks Or Financial InstitutionsSection 36: Power Of Rastra Bank To Specify ConditionsSection 37: Classification Of Bank Or Financial InstitutionsSection 38: Possibility Of Being Converted Into Higher Class Of Bank Or Financial InstitutionSection 32: Use Of The Name Of Banks Or Financial InstitutionsSection 33: Application To Be Made To Obtain A License For Carrying On Banking And Financial TransactionsSection 34: License May Be Granted For Carrying Out Banking And Financial TransactionsSection 35: Power To Refuse To Grant A LicenseSection 39: List To Be PublishedSection 40: Special Provisions Relating To Branches Of Foreign Banks
Chapter - 6
Section 41: Capital To Be MaintainedSection 43: Provisions Concerning Possible LossSection 44: General Reserve FundSection 45: Exchange Equalization FundSection 48: Power To Issue Order To Decrease CapitalSection 42: Capital FundSection 46: Liquid Assets To Be MaintainedSection 47: Declaration And Distribution Of Dividends
Chapter - 7
Section 49: Powers Of Banks Or Financial Institutions To Carry Out Banking And Financial TransactionsSection 50: Acts Not Allowed To Be Carried Out By Banks Or Financial InstitutionsSection 51: Provisions Concerning Subsidiary CompanySection 52: Prohibition On Carrying Out Transactions With Relevant PersonsSection 53: Information Of Suspicious Transaction To Be FurnishedSection 54: Rastra Bank To Issue Directives
Chapter - 9
Section 58: Accounts To Be Maintained AccuratelySection 60: Audit CommitteeSection 61: Functions, Duties And Powers Of The Audit CommitteeSection 62: AuditingSection 63: Appointment And Remuneration Of AuditorSection 64: Ineligibility For Appointment As AuditorSection 67: Recommendation For Taking Actions Against AuditorSection 68: Auditor To CertifySection 59: Balance-sheet, Profit And Loss Accounts To Be PreparedSection 65: Details To Be FurnishedSection 66: Functions, Duties And Powers Of Auditor
Chapter - 10
Section 69: Banks Or Financial Institutions May Be Merged Or AcquisitionedSection 70: Application To Be Submitted For Merger Or AcquisitionSection 71: Provisions Concerning Valuation Of Assets And LiabilitiesSection 72: Provisions Relating AgreementSection 73: Provisions Relating To ApprovalSection 74: Transactions May Be Acquired
Chapter - 12
Section 82: Functions, Duties And Powers Of LiquidatorSection 83: Effects Of Order Relating To LiquidationSection 84: Records Of Assets And LiabilitiesSection 87: Power Of Liquidator To Accept Or Reject ClaimsSection 89: Meeting Of CreditorsSection 91: Advance Payment May Be Made To Depositors ImmediatelySection 92: Power To Sell AssetsSection 93: Notice Of Settlement Of ClaimsSection 98: No Claim To Be EntertainedSection 78: Application May Be Filed Before The Court For Mandatory Liquidation Of Banks Or Financial InstitutionsSection 79: Circumstances Leading To Mandatory Liquidation Of Bank Or Financial InstitutionsSection 80: Transaction To Be SuspendedSection 81: Appointment Of LiquidatorSection 85: Power To Terminate TransactionsSection 86: Notice To Submit ClaimsSection 88: Classification Of ClaimsSection 90: Liquidation PlanSection 94: Order Of Priority For PaymentSection 95: Unclaimed Goods Or AmountSection 96: Decision Of LiquidationSection 97: Mandatory Liquidation Of Bank Or Financial Institution Carrying On Transactions In More Than One Country
Chapter - 14
Section 107: Special Provisions Relating To Infrastructure Development BankSection 108: Security Of Deposits To Be MadeSection 111: Right To Make Claims Over The DepositsSection 115: Prohibition On Making ClaimsSection 118: Provisions Relating To Protection Of Customers’ InterestsSection 119: Exemption And FacilitiesSection 125: Actions Taken Not To Be InvalidSection 128: Amendment Of Memorandum Of Association And Articles Of AssociationSection 133: Power To Frame Byelaws And Working ProceduresSection 109: Banking Secrecy To Be MaintainedSection 110: Power To Give Directive To Freeze AccountsSection 112: Statement Of Unclaimed DepositsSection 113: Recovery From Or Confiscation Of DepositsSection 114: Recovery From DirectorSection 116: Government Of Nepal To Be A PlaintiffSection 117: Provisions Relating To TransparencySection 120: Expenditures ManagementSection 121: Statement Of Assets To Be SubmittedSection 122: Credit, Liabilities And Titles Against The Collateral Of Credit May Be Purchased Or SoldSection 123: Settlement Of DisputesSection 124: Not To Be Liable For Acts Done In Good FaithSection 126: Study Committee And Sub-committee May Be FormedSection 127: Taking Oath Of OfficeSection 129: This Act To PrevailedSection 130: Power To Remove DifficultiesSection 131: Power To Issue Order Or DirectionSection 132: Power To Frame Rules, ByelawsSection 134: Repeal And Saving