Section 17
Qualifications Of Independent Director
While appointing an Independent Director by a bank or financial institution, it shall do so from among the persons having met the following qualifications and experience:-
(a) In the case of a class “A” bank or national level class “B” development bank, having obtained at least master’s degree in a subject as prescribed by the Rastra Bank and experience as prescribed by the Rastra Bank,
(b) In the case of a class “B” development bank and a financial institution of class “C”, other than the class “B” development bank of the national level, having obtained at least bachelor’s degree in a subject prescribed by the Rastra Bank and work experience as prescribed by the Rastra Bank,
(c) In the case of a micro finance institution of class “D”, a person possessing the qualifications and experience prescribed by the Rastra Bank.
(a) In the case of a class “A” bank or national level class “B” development bank, having obtained at least master’s degree in a subject as prescribed by the Rastra Bank and experience as prescribed by the Rastra Bank,
(b) In the case of a class “B” development bank and a financial institution of class “C”, other than the class “B” development bank of the national level, having obtained at least bachelor’s degree in a subject prescribed by the Rastra Bank and work experience as prescribed by the Rastra Bank,
(c) In the case of a micro finance institution of class “D”, a person possessing the qualifications and experience prescribed by the Rastra Bank.
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