Chapter 6: Provision relating to operation of financial transaction
Sec. 47: financial transaction which licensed institution mar carry on:-
1) Subject to this Act and MOA and AOA, a class "A" licensed institution may carry on the following transaction:
a) Accepting deposit with or without interest and refund such deposits
b) Supplying credit as prescribed by Rastra bank
c) Dealing in foreign exchange subject to the law in force.
d) Supplying credit for hire purchase, Hypothecation leasing, Housing and Service business
e) Engaging in merchant banking business subject to the directives of the Rastra Bank.
f) Making arrangement for jointly supplying credits on the basis of co. financing in collaboration with other licensed institution in accordance with the mutual agreement entered into for the division of the collateral pari passu.
g) Issuing guarantee on behalf of its customer's having such customer's execute necessary bonds in consideration thereof, obtaining security and acquire their movable or immovable asset as collateral or mortgage , or the assets of third person as collateral.
h) Supplying credit against the guarantee provided by any native or foreign bank or financial institutions.
i) Issuing, accepting, paying , discounting or purchasing and selling LC, Bills of exchange, Promissory note, cheques traveler's cheques, draft or other financial instrument
j) Accepting deposit, making payment and transfer funds through telephones telex, fax, computer's or magnative tapes or similar other electronic means or equipment subject to the directives issued by the Rastra Bank.
k) Issuing and accepting credit cards, Debit cards, charge cards, and other financial instruments as well and appointing agents to discharge function's relating thereto, subject to the directives issued by the Rastra Bank.
l) Accepting, making payment's and supplying credit through automated teller machine and cash dispensing machine
m) Providing overdraft to person whom it trusts;
n) Supplying fresh credit in lump sum or by installment against the security of the same movable or immovable assets which have already been furnished with it or with any other licensed institution as security to the extent covered by the total value of such security;
o) Acting as an agent of the Rastra Bank on the condition's prescribed by the Rastra Bank and carrying on governmental & other transaction on behalf of the government of Nepal.
p) Remitting or transmitting funds to different places within or outside the state of Nepal through Bill of exchange cheques or other financial instruments, purchasing and selling gold and silver bullion, shares debentures bonds etc. and recovering dividend accruing on share and interest on Promissory notes debentures bonds etc.
q) Acting as a commission agent of its customer's taking custody of and arranging for the sale or purchase of shares, debentures or securities, collecting interest dividends etc. accruing from shares, debenture or securities, remitting or transmitting such interest or dividend to place within or outside the state of Nepal.
r) Purchasing selling or accepting bonds issued by the GON or the Rastra Bank.
s) Arranging for safe deposit vaults.
t) Carrying on off Balance sheet transactions on such conditions as may be prescribed by the Rastra Bank;
u) Supplying credit not exceeding the amount prescribed by the Rastra bank against individual or collective guarantee, for the economic upliftment of the destitute class, low income families, victims of natural calamities and inhabitants in any area of the country.
v) Exchanging with the Rastra bank or any other licensed institutions particulars of , information or notices on debtors or customers who have obtained credits from it or other licensed institutions;
w) Providing guarantee for the supply of credit to its customer's by any other licensed institution
x) Mobilizing capital through shares, debentures bonds, loan bonds, saving-bond, or other financial instrument within the limit prescribed by the Rastra Bank.
y) Obtaining refinance credit from the Rastra bank as per necessity or obtaining or supplying credit to or from other licensed institutions;
z) Doing or causing to be done, study , Research and survey work relating to the establishment, operation and evaluation of projects and providing training consultancy and other information;
aa) Supplying funds received from the GON or other native or foreign agencies as credits for the promotion of projects or managing such credits.
bb) Prescribing conditions are required in order to protect its interest while supplying credits to any persons or institutions or doing any transaction with them.
cc) Obtaining credit by pledging it's movable or immovable asset as collateral;
dd) Writing off credits, subject to the bye-laws framed by the board;
ee) Properly managing or selling its assets;
ff) Performing such other functions as may be prescribed by the Rastra bank.