Chapter – 12

Chapter – 12

Miscellaneous

103. Payment, Clearing and Settlement :

(1) The Bank shall make necessary arrangement for the clearing and settlement of cheques, payment orders, inter bank payment security transactions made in the currencies prescribed by the Bank and any other payment instrument and carry out the functions of regulation, inspection and supervision thereof.
(2) While carrying out the functions referred to in Sub-section (1), the Bank may prescribe necessary procedures.
(3) For the purpose of clearing and settlement arrangement referred to in Sub-section (1), the commercial bank or financial institution shall, subject to the terms and conditions prescribed by the Bank, open account in the Bank or any other financial institution prescribed by the Bank.

104. Collection of Data :

(1) The Bank shall, in order for achieving its objectives or carrying out its functions, collect data necessary for it from itself or from Government of Nepal or other agencies. For this purpose, the Bank may seek help from the authorized persons, institution, organization within and outside the Kingdom and international association and organizations.
(2) The Bank may make necessary provisions for coordination and reformation in the system of collection, storing and distribution of data relating to its area of competence.

105. Trust Accounts : The Bank may, for special purposes, open and operate separate account in the form of trust account. The amount collected in such account shall not be used for any other purposes. The property in such account shall be used only for the purpose of fulfilling the liabilities of such accounts and the Bank shall not be allowed to use the amount or property in other accounts for fulfilling such liabilities.

106. Actions not to be Invalid : None of the actions taken by the Bank or the Board shall be invalid merely for the reason that there was irregularity in the appointment of Governor, Deputy Governor or Director or in the formation of the Board or simply on the ground that the office of the Governor, Deputy Governor or Director has remained vacant.

107. No Responsibility for Acts Done on Good Faith: (1) Governor, Deputy Governor, Director or any official or employee of the Bank shall not be personally or collectively liable for any act done on good faith under this Act and under the Regulations or Bye-laws or under an order or directive issued thereunder. Provided that for any act done knowingly or with mala fide intention, they shall be personally liable.
(2) In case a lawsuit of any type has been filed against the Governor, the Deputy Governor, Director or any official of the Bank with regard to any loss sustained or to be sustained because of any act done or attempted to do in good faith pursuant to this Act or under the Regulations or Bye- laws framed thereunder or an order or directive issued thereunder, the Bank shall bear expenses incurred therefor. Provided that the Bank shall not bear the expenses incurred for the lawsuit filed against any act done knowingly or with mala fide intention.

108.Oath of Office :

(1) Before assuming their office, the Governor and Director before the chief justice of the Supreme Court or justice prescribed by him/her and Deputy Governor before the Governor, shall take an oath of post and secrecy as determined in the schedule.
(2) Any employee or advisor appointed first time in the bank should take an oath of post and secrecy as prescribed, before resuming his post.

109. This Act to be Applicable : Notwithstanding anything contained in the prevailing laws, provisions contained in this Act shall prevail.

110. Power to Frame Rules and Bye-laws :

(1) In order to implement the objectives of this Act, the Bank shall, having obtained approval of Government of Nepal, frame necessary Rules on the following matters:-
(a) Foreign Exchange Transaction;
(b) Refund of the burnt, torn, defaced or mutilated banknotes and coins;
(c) Transaction of business between Government of Nepal and the Bank;
(d) Other necessary matters which bank thinks necessary to implement the objective of this Act.
(2) In order to implement the objectives of this Act, the Board may frame bye laws on the following matters:-
(a) The venue and time of the meeting of the Board and procedures relating thereto,
(b) Formation of sub-committees by the Board as per necessity and procedures of such sub- committees,
(c) Appointment, promotion, transfer, dismissal, remuneration and facilities, pension, gratuity, provident fund, leave, conduct and discipline
and terms and conditions of service, of the employees of the Bank,
(d) Delegation of authority by the Board to the Governor, by the Governor to the Deputy Governor or other employees of the Bank,
(e) The terms and conditions for the lease agreements to be concluded on behalf of the Bank,
(f) The use of the seal of the Bank,
(g) The accounts, ledger, registrars, books and other record and documents to be maintained by the Bank and the format thereof,
(h) Internal auditing and inspection of the Bank,
(i) Supervision of commercial banks and financial institution,
(j) The particulars to be submitted by commercial banks and financial institutions,
(k) Cash deposit of the Bank or responsibility of the cash,
(l) The case to be filed on behalf of the Bank or operation of other transaction of business,
(m) Credit control,
(m) The Bank’s system of expenditure,
(n) Other necessary subjects, which are necessary to implement the objective of this Act.
(3) Except the subject matters referred to in Sub-Sections (1) and
(2), the Governor shall issue the order, direction, procedures and guidelines to be issued under this Act.
(4) The Bank shall forward, for information of Government of Nepal, the Bye-law framed under Sub-section (2) and the order or directive issued under Sub-section (3). (5) The Bank shall publish and transmit the bye-law framed under
Sub-section (2) or an order or directive issued under Sub-section (3).

111. Guidelines to be Framed and Introduced : The Bank may, in order to fulfill the objectives of the Act, frame and introduce necessary guidelines from time to time subject to this Act, or Regulations or bye-laws frame under this Act.

112. Repeal and Saving :

(1) The following Acts have been repealed:
(a) The Nepal Rastra Bank Act, 2012 (1955);
(b) The Currencies Act, 2040 (1983);
(2) All acts and activities carried out in accordance with the Acts repealed under Sub-section (1) shall be deemed to have been carried out in accordance with this Act.
erted by Nepal Rastra Bank (First Amendment) Act, 2063