(1) The Board of Directors may, in order to carry out its institutional, administrative and business transactions in a systematic manner, with the approval of Nepal Rastra Bank, frame byelaws relating to any or all of the following matters subject to this Act and the terms and conditions, limitations and norms as prescribed by the Rastra Bank:-
a. On appointment, promotion, transfer, dismissal, remuneration, allowances, gratuity, pension, leave, code of conduct, discipline, and the terms and conditions of service and the formation of such a service,
b. On financial administration of the bank or financial institution,
c. On writing off of credits,
d. On other matters as prescribed by the Rastra Bank from time to time.
(2) In addition to the matters referred to in Sub-Section (1), a bank or financial institution may frame working procedures on the following matters as may be necessary:-
a. On meeting of the Board of Directors and working procedures of the General Meeting,
b. On delegation of authority by the Board of Directors to any Director, Chief Executive, Office bearer or employee,
c. On the terms and conditions of a contract to be concluded on behalf of a bank or financial institution,
d. On procedures relating to the use of the seal of a bank or financial institutions,
e. On valuation of non-banking assets to be mortgaged at the time of disbursement of credits or at the time of auction,
f. On other business to be carried out by a bank or financial institution as per this Act,
g. On declassifying documents and papers,
h. On other matters as specified by the Rastra Bank, from time to time.