Bank And Financial Institution Act, 2073 (2017)
Section 73
Provisions Relating To Approval
(1) Banks or financial institutions getting approval in principle for initiating merger or acquisition process shall adopt special resolutions from their respective General Meetings and shall submit a joint application to the Rastra Bank having attached therewith the agreement referred to in Section 72 and other matters specified by the Rastra Bank for final approval.
(2)While carrying out an inquiry into the application submitted pursuant to Sub-Section (1), the Rastra Bank, if it deems necessary, may ask for additional information or documents from the concerned bank or financial institution.
(3)While carrying out an enquiry pursuant to Sub-Sections (1) and (2), the Rastra Bank may give due consideration to the facts that whether or not the merger of any bank or financial institution would create a healthy competition in the financial sector of the country, whether or not monopoly or restricted practice of any bank or financial institution may have; whether or not serious adverse impact would have cause on the overall banking and financial system on financial market and depositors and also having conducted fit and proper test of the promoter/s who may has/have significant ownership in the institution to be created after the merger, the Rastra Bank may grant final approval to the banks or financial institutions for merger with each other or acquisition by specifying terms and conditions or limitations.
(4)The Rastra Bank shall, if it does not find to be appropriate to grant approval pursuant to Sub-Section (3), notify the concerned bank or financial institution along with the reasons thereof within forty five days.
(5)In cases where it is difficult for the institutions that have obtained approval pursuant to Sub-Section (3) to comply with the provisions of this Act and directives of Rastra Bank by virtue of such a merger or acquisition, the Rastra Bank may grant exemptions as specified by it on the basis of necessity and rationality.
(6)Other provisions concerning merger and acquisition shall be as specified by the Rastra Bank.
Bank And Financial Institution Act, 2073 (2017)
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 - 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