(1) The following persons shall not be eligible to become a Director of the a bank or financial institution:-
(a) If he or she has not attained the age of 25 years,
(b) If he or she is of unsound mind or insane,
(c) If he or she has been declared bankrupt in Nepal or abroad for being unable to pay debt,
(d) If he or she has been blacklisted or declared a defaulter in connection with any transaction with any bank or financial institution in Nepal or in abroad, and a period of at least three years has not been lapsed after removal of his\her name from the blacklist or list of defaulter,
(e) An incumbent Director or an employee of any corporate body carrying out transactions of a bank or financial institution or any institution collecting any type of deposits or carrying out transactions relating to insurance,
(f) A borrower or an incumbent auditor or an advisor of the concerned bank or financial institution or a person, firm or company who/which is a partner in any kind of contract with the concerned bank or financial institution or having personal interests,
(g) Who has acquired the membership of the Stock Exchange to act as a securities broker or a merchant banker,
(h) Incumbent Director of a licensed bank or financial institution,
(i) A person, who has not subscribed to the minimum number of shares required to subscribe to be eligible for appointment as a Director pursuant to the Articles of Association of a bank or financial institution,
(j) Incumbent employee of the Government of Nepal, or a corporate body having ownership of the Government of Nepal, or Rastra Bank or of a bank or financial institution,
Provided that nothing in this clause shall prevent from nominating a Director in a micro-finance institution or
infrastructure development bank, of which share has been purchased by the Government of Nepal or an institution having under the ownership of the Government of Nepal or Rastra Bank or bank or financial institution.
(k) Who, having a liability to pay taxs pursuant to the laws in force, has failed to pay the same
(l) If he or she has not completed a period of ten years after serving out the sentence upon being convicted of an offence of theft, cheating, forgery, fraud, corruption, any offence involving moral turpitude or a banking offence from a court of Nepal or that of a foreign country,
(m) If action had been taken against him or her by a regulatory agency as per the law for committing an act in contravention of the law and if he or she has not completed a period of five years after being taken such action,
(o) In the case of an independent Director, If he or she is a promoter or a shareholder holding ownership of more than 0.1 % share of the concerned bank or financial institution,
(p) If he or she has not served the full sentence or is yet to clear the dues of the fine imposed by a court of law or if he or she is in arrears to pay a government due.
(2) Notwithstanding anything contained in Clause (e) of Sub-Section (1), an official or employee of a bank or financial institution may work as a Director of a subsidiary company of the same bank or financial institution.