Definitions/Meaning of the terms used in Banking as per "Banks and Financial Institutions Act, 2063 (2006)"

Definitions/Meaning of the terms used in Banking as per "Banks and Financial Institutions Act, 2063 (2006)"

• "Rastra Bank" means the Nepal Rastra Bank established under the Nepal Rastra Bank Act, 2058 (2002)

• “bank” means a corporate body incorporated to carry on financial transactions as referred to in Sub-section (1) of Section 47

• “financial institution” means a corporate body incorporated to carry on the transactions as referred to in ...Read More...

• “memorandum of association” means the memorandum of association of a bank or financial institution, and this term also includes the statute of a corporate body

• “articles of association” means the articles of association of a bank or financial institution

• "promoter" means a person who, having consented to subscribe at least one share, signs the memorandum of association and the articles of association for the establishment of a bank or financial institution pursuant to this Act

• “share” means a division of the share capital of a bank or financial institution;

• “shareholder” means a person having ownership in a share of a bank or financial institution

• "prospectus" means a prospectus to be published by a bank or financial institution pursuant to Section 6

• “Board” means the Board of Directors of a bank or financial institution to be formed pursuant to Section 12

• “chairperson” means the chairperson of the Board

• “director” means a member of the Board, and this term also includes the chairperson and an alternate director

• “officer” means the director, chief executive, secretary and employees of a bank or financial institution, and this term also includes a person who acts as an advisor, auditor, and liquidator of the licensed institution

• “license” means the license issued by the Rastra Bank to a bank or financial institution to carry on financial transactions, pursuant to this Act

• “licensed institution” means a bank or financial institution which has obtained the license to carry on financial transactions pursuant to this Act

• “financial transactions” means such transactions referred to in Section 47 as may be carried on by a bank or financial ....Read More....

• “capital fund” means the total of the primary and supplementary capital of a bank or financial institution, and this term includes any other fund of the institution as prescribed as such by the Nepal Rastra Bank from time to time

• “primary capital” means the funds of a bank or financial institution listed under such headings as the paid-up capital ....Read More....

• “supplementary capital” means the funds of a bank or financial institution kept under such headings as may be prescribed by the Rastra Bank from time to time

• “risk-weighted assets” means the total assets calculated by multiplying the amounts coming under each heading off on ....Read More....

• “liquid assets” means the cash balances of a bank or financial institution, the balances held by a bank or financial institution ....Read More....

• “deposits” means amounts deposited in current, savings or fixed accounts of a bank or financial institution, and this term also ....Read More....

• “current account” means an account of funds deposited with a bank or financial institution as may be withdrawn at any time on demand

• “saving account” means an account of funds deposited with a bank or financial institution for purposes of saving

• “fixed account” means an account of funds deposited with a bank or financial institution for a specified term

• “credit” means a direct or indirect commitment to supply funds, and in return therefor, the right to recover the invested ....Read More....

• “currency” means any kind of currency notes, postal orders, postal notes, money orders, cheques, drafts, traveler's cheques ....Read More....

• “foreign currency” means any currency other than the Nepalese currency, and this term also includes special rights to ....Read More....

• “foreign exchange” means a foreign currency, deposits, credits and balances of all types which are paid or received in a foreign ....Read More....

• “convertible foreign currencies” means any foreign currencies as may be designated as convertible foreign currencies by the Rastra Bank upon a public notification, as required

• “electronic fund transfer” means the business of accepting deposits, making payments and transferring funds through ....Read More....

• “letter of credit” means a letter written by one bank or financial institution to another bank or financial institution authorizing ....Read More....

• “negotiation” means the business of transferring a negotiable instrument to any person on the condition that the receiver may become the bearer thereof

• “negotiable instrument” means promissory notes, bills of exchange or cheques

• “bill of exchange” means a signed document issued by one person to another directing the latter to pay the specified sum ....Read More....

• “promissory note” means a document containing a signed pledge to pay a specified sum of money unconditionally to any ....Read More....

• “off-balance sheet transactions” means transactions relating to letters of credit, letters of guarantee, letters of acceptance ....Read More....

• “chief executive” means the executive chairperson, chief executive officer, executive director, managing director, managing ....Read More....

• “office” means the central office of a bank or financial institution, and this term also includes the regional, branch, sub-branch, depot, area, representative, liaison and any other office whatsoever of a bank or financial institution

• “financial interest” means a situation where ten percent or more of the total paid-up capital of any firm, company or ....Read More....

• “family” means the concerned person's husband or wife, son, daughter, adopted son, adopted daughter, father, mother, stepmother and elder brother, younger brother, elder sister and younger sister to be maintained by him or her

• “prescribed” or “as prescribed” means prescribed or as prescribed in the rules or bye-laws framed under this Act