NRB Act Notes in English NRB Act, 2058 (2002) Date of Authentication and Publication 17 Magh 2058 (January 30, 2002) Amending Act Authentication and Published date 1. NRB (First Amendment) Act, 2063BS (2006) 2063.07.23 (Nov. 9, 2006) 2, Republic Strengthening and some Nepal Laws Amendment Act,2066 BS (2010)C] 2066.10.07 (Jan. 21, 2010) 3. NRB (Second Amendment) Act, 2073 BS (2016) 2073.07.29 (Nov. 14, 2016) 12 chapters, 112 sections, Act No. 15 of 2058 Ch 1. Preliminary Ch 2. Estal ment, Objectives and Functions, Duties and Powers Ch. 3 Formation and Functions, Duties and power of BOARD Ch.4. Financial Provisions Ch 5. Monetary Functions and Operation of Open Market Ch. 6 Monetary Unit, Bank note and Coins & Ch. 7 Foreign Exchange Policy, Regulation and ReseveRy Ch.8 Relation with Government of Nepal & Ch. 9, Regulation, Inspection and Supervision a Ch. 9A Provisions relating to resolution 10. Balance Sheet, Auditing and Report SS 11. Offences, Punishment and Proceedings 12. Miscellaneous Ch 1. Preliminary: It contains several definitions. "Bank" in this act means NRB (NRB). Some major important definitions: a. "Financial Institution" means a financial institution established under the prevailing laws with the objectives of providing loans for agricultural cooperative, industrial or any other specific economic purpose or of collecting deposits from the general public and this term also includes an institution prescribed as financial institution by Government of Nepal upon publishing notice in the Nepal Gazette. b. "Money" means all types of currency notes, postal orders, postal notes, money orders, cheques, drafts, traveler's cheques, letters of credit, bills of exchange, promissory notes and credit cards and this term also wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English includes similar types of monetary instruments as NRB may prescribe, as per the requirement, through the publication and transmission of public notice. ©. "Foreign Exchange" means foreign currency, all types of deposits, credits, stocks, foreign securities payable in foreign currencies and the cheques, drafts, traveller's cheques, electronic fund transfer, credit cards, letters of credit, bills of exchange, promissory notes in international circulation payable in foreign currencies; and this expression also includes whatsoever, type of other monetary instrument as NRB may prescribe, as per the requirement, by publication and transmission of public notice. d. "Foreign Exchange Transaction" means the acts of purchase and sale of foreign exchange or the acts of borrowing, giving credits, and of accepting or providing foreign exchange in any manner whatsoever, and this expression also includes the act of granting approval for foreign exchange by NRB. €. "Letter of eredit" means an instrument issued by a bank to another bank instructing to accept cheque, draft, hundi or bill of exchange drawn by specified person up to wet of specified amount. mal order in ee by the person giving it, requiring the person to whom itis dressed to pay on demand, or ata fixed or £. "Bill of Exchange" means an uncondi ed by one person to another, signed determinable future time, a sum certain in money to, ect order of a specified person or to bearer. g. "Promissory note" means an instrument si Ny @ person with an undertaking to pay, without any: condition, a fixed amount to any particular peer Teferred to in such instrument or to the person ordered by such person or to the bearer of such inst on a fixed date or on demand. h. "Credit" means a direct or indirect promise to invest money and the right to recover such amount of investment in return and the interest of such credit or payment of other charges, the refinan given against the security of credit or investment restructuring and renewal of credit, the guarantee made for repayment of credit or any other promise for such repayment, and this expression also includes any type of debt. "Credit security,” means any bill of exchange of indebtedness and any other instrument equivalent to such instruments of indebtedness, whether in certified o in book entry form, j."Monetary liability" means NRB notes and coins in circulation existing in the balance sheet of NRB QI. Explain the features of NRB Act, 2058. ‘Ans: NRB Act has been enacted to establish it as a central bank in order to maintain the stability of prices and balance of payments and overall financial sector in order to contribute to the sustainable development, of Nepal's economy. The features of the Act are as follows. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English 1. The Jaw presents the bank as a central bank and an autonomous organization with an inseparable succession. 2. The main objectives of the Bank are to formulate the necessary monetary and foreign exchange policy for sustainable growth of the economy, maintain price and balance of payments, inerease publie access to confidence in the banking system and develop efficient payment systems. 3. The Act specifies the functions, duties and rights ofa bank to formulate / manage the required monetary policy, foreign exchange rates, policies and reserves, ete. 4. The act has provided exemptions to the bank in various taxes and fees. 5, NRB shall represent Nepal in the intemational associations and organizations for the work under its jurisdiction. 6. Board of Directors of NRB shall formulate the monetary policy, foreign exchange policy, various internal annual programs, staff policy ete. and Govemor is responsible for its implementation and the licensing. regulation, supervision, inspection of the BFs. NG 7. NRB has powers for open market operations, direct FEN mandatory deposits, discount transactions, loans to the Govemment of Nepal and provision of, eaters refinancing to BFIs 8. Act has given the bank # monopoly onthe tine of banknotes and coins in Nepal and for the necessary security. . we 9. The bank has been piven he right to ey io international leaving and payment agreements by making arrangements related to foreign exchange. 10. The Act has established the bank as a banker, advisor and financial agent of the governmeat of Nepal. LL. Act has empowered NRB to regulate, supervise and inspect BFls, and also the power to issue various directives to BFIs, declare them problematic and take various corrective, reformative and tesolution action. 12, Act has mandated the Bank to publish monetary policy for public information every year, and prepare its own balance sheet and submit the report to the Government of Nepal. 13. The Act also has provisions for punishment to BFIs if found guilty for violating NRB regulations. In conclusion, it can be said that NRB Act, 2058 has established NRB as the central bank and presented it as the policy maker, currency issuer and regulatory body of BFls. Q2. Write down the objectives, functions, duties and powers of NRB as per NRB Act, 2058. (10 marks) wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English Ans: NRB Act, 2058 has empowered NRB as the Central Bank of Nepal. The objectives, functions, duties and powers of NRB are mentioned in Chapter 2 of the Act. Objectives (See.4): (a) To formulate necessary monetary and foreign exchange policies for managing & maintaining price stability and BOP for economic stability and sustainable development of economy. (b) To increase the access of the financial service and public confidence towards the banking and financial system by maintaining stability of the banking and financial sectors, (c) To develop a secure, healthy and efficient system of payment, NRB shall, without any prejudice to the objectives, extend co-operation in the implementation of the economic policies of Government of Nepal Functions, Duties and Powers (See. 5) (a) To issue bank notes and coins, (b) To formulate & implement: ® © necessary monetary policies in order to maiftaiitprice stability, © foreign exchange policies we e (c) To determine the system of foreign exchans (d) To manage and operate foreign exchai = 5 (c) To issue license to BFIs (Banks &RMancial Institutions) for ban! regulate, inspect, supervise and monitor their transactions. 12 and financial business and to (8) To actas a banker, advisor and financial agent of Government of Nepal (g) To act as the banker of BFIs and to function as the lender of the last resort (1) To establish, promote & regulate payment, clearing and settlement mechanism. (i)To operate open market transaction for liquidity management. (j) To implement any other necessary functions to achieve the objectives under this Act Concludingly, NRB Act has clearly given objective to NRB for maintaining overall economic stability of the nation. To fulfill the objectives, it has the function, duties and powers of issuing monetary & foreign exchange policies, and to be apex & regulatory central bank of all the BFls. Q3. As per NRB Act, what are the prior right of NRB and the functions not to be carried out by NRB? wauw. facebook. com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English Ans: Chapter 2 of NRB Act, 2058 contains the prior rights of NRB and the functions not to be carried by it. The prior rights of NRB are: a. Prior right of security over cash deposited at NRB or in any BF! or against any other movable and immovable property owned by the borrower to recover loan taken by borrower from NRB b. NRB shall recover its loan by taking the cash into its custody or sell the movable or immovable property as prescribed. Similacly, the functions not to be carried out by NRB are: a. Not to carry out following functions, except otherwise provided in this A\ Providing any loan, accepting any type of deposit or making any type of financial gift Purchasing shares of BFls, public corporation or company or acquiring any type of proprietary right in any financial, industrial, commercial, agricultural (FICA), or other institution ee Carrying out any type trade; and ew Acquiring right over movable and ji ible property through purchase, lease or any manner. But, it may acquire such for carrying out its function or for achieving its b. However, NRB may provide | oOo in the shares of the institutions which carry out the functions helpful in carrying out . functions or attaining its objectives, not exceeding ten percent of the total capital of such institutions. ©. Similarly, NRB can provide loan to its own employees In conclusion, NRB has prior right of security over cash or property to recover loans. Similarly, it is not allowed to do trading activities or financial activities like other BFIs except otherwise than fulfilling its objectives & within limit. Q4. Explain the privileges and facilities to NRB. Also explain its coordination with public bodies and international organizations as per NRB Act. ‘Ans: The privileges and faci ies of NRB & its coordination with public bodies and international organizations are given in chapter 2 of NRB Act, 2058. Privileges and Facilites to NRB: wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English (a) Exemption from all types of taxes, fees and charges on the incomes, capital transactions, houses, land, assets etc.; (b) No requirement for the payment of registration fee for registration of the deeds of loan or refinance to be given by it, (c) No requirement of revenue stamps on any of the documents relating to it; (4) No tax, fee, charge, duty on the export and import of bank notes, coins, gold, silver and the paper, metal, chemicals, and other materials to be used for printing bank notes and minting coins. ation with Public Be Coors (1). NRB may, make necessary coordination with public bodies or their agencies/organs in order to achieve its objectives. (2) NRB shall provide necessary information on the balance of payment, banking and financial matters on the request made by Government of Nepal. (3) Government of Nepal, pul bodies and the pre Nl provide necessary information on economic and financial matters in the event of renege it International Cooperation and Relationship: Ss SS (1) NRB shall represent Nepal in imtemaigh ganizations for matters such as monetary policy, foreign exchange policy, and the balancsxgf¥ayment, bank supervision and other related matters. (2) NRB may provide and also ol fe services of banking and payment to foreign government, foreign central banks, foreign bank and intemational organizations. (3) NRB shall take part in intemational organizations or associations working for the financial and economic stability through intemational monetary cooperation, (4) NRB, shall undertake the functions to be carried out on behalf of the country while taking part in international organizations as a representative of Nepal. Q5. Mention the constitution of the Board of Directors as per NRB 2058 and the functions, duties and rights of that committee, Answer. Chapter 3 of NRB Act 2058 provides for the formation of the Board of Directors and the functions, duties and rights. The Board of Directors is constituted as follows: (A) Governor - Chairman wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English (B) Secretary, Ministry of Finance - Member (C) Two Deputy Governors - Members (D) 3 Board of Directors appointed by the Government of Nepal from among the eminent persons in the field of economic, monetary, banking, financial and commercial law. Functions, Duties and Powers of the Board of Directors: (A) To formulate monetary and foreign exchange policy. (B) To make necessary decision regarding bank notes and coins and to formulate necessary policy regarding their issuance. (C) To make provisions for inspection and supervision of BFIs and to formulate necessary policy regarding banking and financial management. (D) To approve the rules and regulations of NRB and to formulate the policy applicable to the operation and management of NRB. (E) To determine the policy regarding appointment, Sotion, transfer, dismissal, remuneration, retirement, allowance, provident fund, leave, soning ther conditions of service of the employees of NRB (HR management policies) . & (F) To approve the annual program and budget tind the accounts of the annual audit for NRB and to submit its report to the Government of Nepalfor information. (G) To approve the annual report of: (H) To formulate policy regarding issuance and revocation of licenses to BFIs, (1) To approve the limit of loan to be provided by NRB to the Govemment of Nepal (J) To determine the amount, limit and condition of loan and refinancing given by NRB to BFIs. (K) To decide on the membership of NRB in the international association or organization. (L) To mobilize the financial resources of NRB and to formulate investment policy (£) To submit reasons for amendment of this Act to Government, if required. (L) To decide on all matters except those falling under the jurisdiction of the Govemor under this Act. (0) To delegate the powers of BOD to the Governor or sub-committee under BOD. Q6. Write the functions, duties and rights of the Governor as per NRB 2058. ‘Answer: As per Chapter 3 of NRB 2058, the functions, duties and powers of the Governor are as under: (A) To implement the decisions made by the committee. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English (B) To operate and manage NRB. (C) To manage the work to be done by NRB (D) To represent on behalf of NRB in the international association, organization. (E) To implement monetary and foreign exchange policies. (F) To determine necessary policy regarding interest rate of deposit and loan in BFls. (G) To determine necessary policy regarding the interest rate to be taken by BF ls on loans or deposits. (H) To formulate liquidity policy to be maintained by BFIs. (1) To make necessary provisions regarding the mandatory reserves to be kept by the BFIs, (J) To determine the condition regarding the capital adequacy of BFls. (K) To decide on the procedure and conditions for buy and sale of gold and other precious metals. (L) To determine the service fee for the services provided by NRB. (M) To decide to establish and close the branch office and other offices of NRB as required. (N) To establish and close the agency of NRB. oS ration of the IT system of NRB. (0) To make necessary provisions for the developm (P) To make necessary arrangements for the suj (Q To make decision regarding revocation of (R) To decide on other matters subject tounatthority delegated by the Board of Directors. Q7. What are the foreign exchange reserves of NRB? What are the rights of NRB to manage foreign exchange? Answer: Section 66 of Chapter 7 of NRB Act 2058 has provisions about the foreign exchange reserves to be made by NRB and in Sec. 63 of the same chapter, the authority to manage foreign exchange has been given to the NRB. NRB's foreign exchange reserves include the following assets: (A) Gold and precious metals in NRB's account. (B) Foreign currency taken over by NRB or deposited in NRB account, (C) Foreign currency in the name of NRB in a foreign central bank or other foreign bank account. (D) Special drawing rights (SDR) deposited in the name of NRB in International Monetary Fund. (E) Securi in foreign exchange held by NRB. , Pledges, Savings Bonds, Bonds and other debt securities issued by any debtor to be paid wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English (F) Immediate or repurchase agreement with foreign bank or International Financial Institution or those institution as collateral and for future purchase to be paid in foreign exchange between NRB and the other party. NRB shall have the following powers to manage foreign exchange: (A) To issue license to the person wishing to do foreign exchange business subject to this Act or other prevailing law. (B) To make rules and regulations for the regular and systematic conduct of foreign exchange transactions by the licensed person, to issue necessary orders, instructions or notices. (C) To inspect, supervise and monitor the licensed person. (D) To determine the basis, limits and conditions of the business of the licensed person (£) To determine the method of fixing the foreign exchange rate of Nepali Rupee. Q8. What is the relationship of NRB with the Government of Nepal? Explain on the basis of NRB ‘Act, 2058. Chapter 8 of NRB Act, 2058 explains the relationship bpssteen NRB and the Government: ~ NRB shall be the banker, advisor and aN of the government and NRB shall have to give Ton. advice to the government related to its jurisdic ~ Every year, the Goverment of Nepftshall consult with NRB regarding the overdraft including iniernal debt while preparing the arial budget and NRB shall submit pre-budget review report to the Government of Nepal on economic and financial issues every year. - The Government of Nepal shall consult with NRB on the amount, receipt, condition, payment, ete, of the loan amount when taking loan from external sector. - Similarly, NRB shall be consulted when the government approves a private or public entity to create liability in foreign exchange. - NRB shall accept deposits from the Government of Nepal or other bodies designated by the Government of Nepal. - NRB shall act as an agent for the purchase and sale of bonds issued by the Government of Nepal, managing the market, handing over and keeping records of it, payment of principal, interest and other fees. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English the NRB when it comes to - The concerned body of the government shall be able to consult amending the law related to issues such as monetary policy, credit, balance of payments, foreign exchange, banking, - Unless otherwise provided in the Act, NRB shall not provide any kind of financial assistance to the government or government-owned entities. ~ NRB shall be able to provide loan fo the government with repayment within 180 days and long term loan to government for membership fees to be paid to an international organization. ~ All the loan amount provided by NRB to the goverment shall be in Nepali Rupees and all the loan related agreements, amount, limit, interest rate, condition etc. should be clear. QY. Write down the situations where NRB can declare BF Is as problematic. NRB will declare any BFI as problematic or terminated as per Chapter 9 of the NRB Act, 2058, or in case of remarkable inability to pay the obligation, or in case.of inspection or supervision report of NRB orany other condition as follows: cy (A) any act contrary to the interest of the depositor, tg hive, lender or the general public, (B) if BFT does not fulfill his financial obligat SO (© if BFL isin or about to fall into debtor arp kperiencing significant financial difficulties, (D) If violation of this Act, the prevail s relating to BFI, other prevailing laws, the conditions specified in granting the license or th feYotation, direction or order of NRB, ete. is found. (£) if license has been obtained by presenting false, forged, false documents or facts, (£) Failure to maintain minimum capital as per NRB directive, (G) If legal action has been taken against liquidation or alteration, (H) in case of undue delay in initiating voluntary revocation proceedings, (1) In the case of a BFI established with the involvement of a foreign BFI, if the foreign BFI is liable / revoked or if the license is revoked or if the business is partially or completely banned or if itis seen to conduct banking business in association with such BFI, or (J) If NRB is convinced that the BFI has adversely affected the payment or obligation to be fulfilled. Q10. What kind of action can be taken by NRB to the problematic BFIs? As per Chapter 9 of the Act, NRB may take control of the management of the problematic BFI or order the Board of Directors of the concerned BFTto take any or all of the following actions: wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English (A) to increase paid-up capital, (B) to suspend the voting rights or other rights of shareholders, (©) to stop the distribution of dividends or other amounts for a fixed period to increase the capital, (D) to determine the extent of distribution of facilities to be provided to the operators and other high officials, (E) make appropriate provisions for good govemance, intemal control and risk management of BFI, (F) accepting deposits, restricting or limiting the flow of credit or investment, (G) to keep capital adequacy and liquidity ratio high or to restrict business or impose other conditions, (H) restricting business or prohibiting the sale of property or expansion of branches or closing of any branch office at home or abroad, (I) to make necessary provisions to reduce the risk of qualitatively dubious assets and collateral / assets without actual value record, (J) to prevent the BFI from engaging in any unlawfial act Whos loss, (K) to prevent the BFI trom carrying out any action ags%ain nature for a specified period of time, (L) Prior approval of NRB should be obtained ‘aking major capital expenditures, committing significant obligations or spending on potent SNyations, (M) As per requirement, one or moresgifeetor, officers or employees may be removed and if not removed, the bank may remove itself OS () suspending the Board of Directors and taking over the management of the business. (OQ) Make BFI to apply for delisting in Securities market. (P) Prohibit repayment of principal and interest on unsecured term auxiliary loans, (Q) Any other action deemed necessary and appropriate. QUI. What are the provisions related to bank regulation, supervision and inspection in NRB Act 2058? Write the points briefly. Under Chapter 9 of the Act, Sec. 79 provides for regulation and Section 84 provides for inspection and supervision, which can be summarized as follows: 1. Regulatory power of NRB in Section 79: A. Full authority to NRB to regulate BFlIs and to make necessary rules, regulations and orders, directives. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English B. NRB directions to BFls to submit: © On Balance Sheet & Off Balance Sheet records and details of income and expenditure and their proportional details with the account heads. © Commitment of special type of loan / investment condition, restriction or prohibition or risk bearing nature which does not fall within the limits prescribed by NRB, © Periodic reconciliation of assets and liabilities and off balance sheet headings. © Foreign exchange status, spot and advance exchange rates, swaps, options, ete. and other procedures of electronic or other payment system. © Other details and documents specified by NRB. 2. Provisions related (o Inspection and supervision mentioned in Section 84: (1) NRB*s BOD shall make international level inspection sages byelaws for BFls. (2) NRB may at any time assign experts for inspection @ vision experts of any office of BFls or demand details and information from BFls. LW (3) BFls shall provide the detai required fox iter audit & electronic media-created programs, financial control system or any other necessagy documents within the stipulated time demanded during inspection and supervision. . we (4) During inspection and supervisiodS © A written statement may be made regarding any action deemed necessary while inspecting and supervising with any director, official or employee of BFIs. © BPs shall abide the necessary instructions given by inspecting and supervising officer. © Itis the responsibility of the Governor to make necessary decisions based on the directions given by BOD on the submitted report. In conclusion, Section 79 and Section 84 have given special powers to NRB to regulate, inspect and supervise BFIs. In addition, there are many other regulatory provisions in Chapter 9, such as: © BEls to comply approval and conditions of deposit and loan as directed by NRB. © The interest rates on deposits and loans should be as per the rules laid down by NRB. © Banking transactions is to be carried out as per the license and conditions. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English © Directed Lending is to be complied with. © RB approval is required for debentures and other instruments, © The chapter has given powers to NRB to declare BFIs problematic and take reformative and corrective actions in case of BFls* inability to conduct banking business efficiently, or inability to pay liabilities, fraud, embezzlement etc. © Similarly, NRB has powers for resolution of BFls if it doesn’t function smoothly even after reformative and corrective actions. QI2. Explain how the need of NRB Act, 2058 can be proved in the context of BAFTA, 2073 acting as the umbrella act of overall banks and financial institutions. ‘Anst: The main purpose of BAFIA is as follows: ~ To inerease public confidence in the overall banking and ec system of the country, To protect and promote the rights of depositors, OC to provide quality and reliable banking, financial aes through healthy competition among BFls, Si To make the national economy strong and gneve to integrate and amend laws for incgaton operation, management, regulation, inspection and supervision of BFls for maintainidgpancal stability. Similarly, the main objective of NRB Act, 2058 is as follows: = 10 establish NRB as the central bank for maintaining stability of price and balance of payments in order to achieve sustainable development in Nepal's economy. Thus, it can be understood that BAFIA is implemented for smooth operation of BFIs and NRB Act is implemented for overall economic stability of nation. ‘The significance of the NRB Act can be made clear by the following points: = Central Bank regulatory power is required for licensing, regulating and supervising BFIs, = In order to maintain price stability, money flow needs to be adjusted and this can be done through monetary policy regulations in banking transactions. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English = The objective of maintaining balance of payments is also of the central bank, which is achieved through regulations in import and export through banking channels. - To direct BFIs to increase banking access for achieving the sustainable development goals taken by the government. - Toact as banker and lender of last resort of BFIs, - To regularize interbank system by establishing and promoting payment, clearing and settlement mechanism, and = To conduct open market transactions through the means required for liquidity management in the banking sector (such as interest rate corridors). - In addition to develop appropriate pol In conclusion, both BAFIA and NRB Act are necessary for eye of the overall banking system. For the smooth operation of BFls, BAFIA is necessary, an jes for banks to transact in foreign exchange, regulation BFls as well as for bringing the overall economy into the formal banking channel thigh appropriate policies, NRB Act is required Q13. In order to implement the objectives of NRB Act, 2058, what are the rules and regulations of NRB and what kind of regulations can be made by the Board of Directors of NRB? Write. Answer: Rules that banks can be me As per Section 110, NRB may, with the approval of the Government of Nepal, make necessary mules in the following matters: © Foreign exchange transactions © Refund of burnt, tom, defaced or multilated banknotes and coins © Business transactions between the Government of Nepal and NRB © Other issues deemed necessary to fulfill the objectives of the Act. Regulations to be made by the Board of Directors of NRB: Board of Directors of NRB may make necessary regulations in the following matters: © The place, time and procedure of the meeting of the Board of Directors © Formation of sub-committee as per requirement and its working procedure wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English © Appointment, promotion, transfer, dismissal, remuneration and benefits, retirement, gratuity, provident fund, Leave, Conduct and Discipline and Terms of Service of NRB employees © Delegation of authority to the governor by BOD and by the govemor to the deputy governor or other ‘employees of NRB. © Conditions regarding lease acceptance on behalf of NRB @ Use of NRB seal © Account, ledger, register, book or other records, document and its format to be maintained by NRB © Internal audit and inspection of NRB © Supervision of BFIs © Details to be submitted by BF Is © NRB’s cash balance or responsibility of cash ® © Case to be filed on behalf of NRB or operation we ansaction of business © Credit control xs © Expenditure management of NRB © Regarding the merger of BFIs se © Regarding prompt corrective why BEIs © Regarding credit information © Regarding payment and account settlement © Regarding carrying out clearing and settlement. © Regarding the license to be issued by NRB © Other issues required to implement the objectives of the Act. wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English UTTER BLT What-are the. 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CASH = ger OT; @ ~ hare 7 Ha a re = Se ar rT go apace eh SuKeT a BBE $ aut Sa ~oteatzcart Ww gaa meet dra Boa Thana Maar Deh de Yor Seta oy z 3s TBTa HGH Boa OAR TTT S3 WE SS nae UCT Cae | wauw. facebook com/cakrishnaniraula www.krishnaniraula.com www. voutube,com/user/Krish472929 httos://t.me/cakrishnaniraulaNRB Act Notes in English pe OS eee sere ott ah Lg rar oe ereay pn ea Rare ag yaar afiecam CGefeT Serr eT bere aoa a es ORG FATT BET aT Maio, TRS ag Mail SraeT FT PEO URC ee a SE tS aa na aan Kee a para + alo or Siar A GTS a Berth qt A aE Weed TL GTA IO PT SUIT al eRe emer Caarct ees ae e UR Cee A ss Baha AR That fone | nn Te SAAT FATT OF 7 i Teese Z ae a Rat ae am www kristnantrauia.com waww.voutube,com/user/Krish472929 httos://t.me/cakrishnaniraula