Section 74
Punishment For Violation Of Regulation Of Rastra Bank
(1)If any licensed institution violates any order or directive issued by the Rastra Bank under the Nepal Rastra Bank Act, 2058 (2002) or this Act or the Rules or Bye-laws framed there under the Rastra Bank may impose the following punishment on such licensed institution, according to the gravity of the violation of regulation:
(a) To warn, or give warning in writing;
(b) To get the Board of Directors to sign a bond for taking reformative measures;
(c) To issue written order to end repeated violations, remain away therefrom and take reformative measures;
(d) To restrain the licensed institution from distributing dividends to its shareholders or issuing bonus shares or from doing both of these acts;
(e) To restrain the licensed institution from accepting deposits or advancing credits or from doing both of these acts;
(f) To impose a full or partial restriction on the transactions of the licensed institution;
(j) To suspend or cancel the license of the licensed institution;
(k) To file an application with the Appellate Court for the dissolution of the licensed institution.
(2) Notwithstanding anything contained in Sub-section (1), in the event of the failure of a licensed institution to submit such documents, returns, data or records as demanded by the Rastra Bank or its officer carrying out inspection and supervision under the Nepal Rastra Bank Act, (2002) or this Act or the Rules or Bye-laws framed thereunder, within the time prescribed by the Rastra Bank or its officer carrying out such inspection and supervision, the Rastra Bank may punish such licensed institution with a fine ranging from ten thousand rupees to fifty thousand rupees, based on the classification of the licensed institution.
(3) If the licensed institution fails to pay the fine imposed under Sub-section (2) within three days, the Rastra Bank may realize it by debiting it from the account of such licensed institution with the Rastra Bank.
(4) If any officer of a licensed institution violates the Nepal Rastra Bank Act, 2058(2002) or this Act or the Rules or Bye-laws framed thereunder or any order or directive issued by the Rastra Bank thereunder or acts contrary to the interests of depositors or investors or fails to submit such documents, returns, data or records as demanded by the Rastra Bank or its officer carrying out inspection and supervision, within the time prescribed by the Rastra Bank or its officer carrying out such inspection and supervision, the Rastra Bank may punish such officer with punishment as follows, according to the gravity of the violation of such order or directive:
(a) To warn or admonish him or her.
(b) To suspend him or her.
(c) To impose on him or her a fine not exceeding five hundred thousand rupees.
(d) To order the Board of Directors of the concerned licensed institution to withhold all facilities including his or her salary and allowances.
(e) To order the Board of Directors of the concerned licensed institution to remove him or her from the office of director if he or she is a director or to retire him or her from the service if he or she is an officer, notwithstanding anything contained in the laws relating to the conditions of service of such employee.
(5) While imposing punishment on any person under this Section, such person shall not be deprived of a reasonable opportunity to defend him or her. Provided that while imposing punishment under Clause s (a), (b), (c) and (d) of Sub-section (1), Sub-section (2) and Clause s (a) and (b) of Sub-section (4), it shall not be necessary to provide an opportunity for defense.
(a) To warn, or give warning in writing;
(b) To get the Board of Directors to sign a bond for taking reformative measures;
(c) To issue written order to end repeated violations, remain away therefrom and take reformative measures;
(d) To restrain the licensed institution from distributing dividends to its shareholders or issuing bonus shares or from doing both of these acts;
(e) To restrain the licensed institution from accepting deposits or advancing credits or from doing both of these acts;
(f) To impose a full or partial restriction on the transactions of the licensed institution;
(j) To suspend or cancel the license of the licensed institution;
(k) To file an application with the Appellate Court for the dissolution of the licensed institution.
(2) Notwithstanding anything contained in Sub-section (1), in the event of the failure of a licensed institution to submit such documents, returns, data or records as demanded by the Rastra Bank or its officer carrying out inspection and supervision under the Nepal Rastra Bank Act, (2002) or this Act or the Rules or Bye-laws framed thereunder, within the time prescribed by the Rastra Bank or its officer carrying out such inspection and supervision, the Rastra Bank may punish such licensed institution with a fine ranging from ten thousand rupees to fifty thousand rupees, based on the classification of the licensed institution.
(3) If the licensed institution fails to pay the fine imposed under Sub-section (2) within three days, the Rastra Bank may realize it by debiting it from the account of such licensed institution with the Rastra Bank.
(4) If any officer of a licensed institution violates the Nepal Rastra Bank Act, 2058(2002) or this Act or the Rules or Bye-laws framed thereunder or any order or directive issued by the Rastra Bank thereunder or acts contrary to the interests of depositors or investors or fails to submit such documents, returns, data or records as demanded by the Rastra Bank or its officer carrying out inspection and supervision, within the time prescribed by the Rastra Bank or its officer carrying out such inspection and supervision, the Rastra Bank may punish such officer with punishment as follows, according to the gravity of the violation of such order or directive:
(a) To warn or admonish him or her.
(b) To suspend him or her.
(c) To impose on him or her a fine not exceeding five hundred thousand rupees.
(d) To order the Board of Directors of the concerned licensed institution to withhold all facilities including his or her salary and allowances.
(e) To order the Board of Directors of the concerned licensed institution to remove him or her from the office of director if he or she is a director or to retire him or her from the service if he or she is an officer, notwithstanding anything contained in the laws relating to the conditions of service of such employee.
(5) While imposing punishment on any person under this Section, such person shall not be deprived of a reasonable opportunity to defend him or her. Provided that while imposing punishment under Clause s (a), (b), (c) and (d) of Sub-section (1), Sub-section (2) and Clause s (a) and (b) of Sub-section (4), it shall not be necessary to provide an opportunity for defense.