Professional Documents
Culture Documents
5
Date- 2066-4-16 .......................................................................................................................................................... 5
Withdrawal of action: ................................................................................................................................................ 5
Circular-2 .............................................................................................................................................................................. 5
Date- 2066-4-19 .......................................................................................................................................................... 5
a) Provision relating to black listing: ....................................................................................................................... 5
b) Publication of Financial statement: .................................................................................................................... 5
Circular-3 .............................................................................................................................................................................. 5
Date- 2066-4-30 .......................................................................................................................................................... 5
a) Single obligator limit: ............................................................................................................................................ 5
b) Statutory liquidity ratio (SLR): ............................................................................................................................ 5
c) Fines and penalties for not fulfilling the SLR limit .......................................................................................... 6
d) Deprived sector lending: ...................................................................................................................................... 6
e)Transaction through cheque: ................................................................................................................................ 6
Circular-4 .............................................................................................................................................................................. 6
Date- 2066-5-7............................................................................................................................................................. 6
Withdrawal of action: ................................................................................................................................................ 6
Circular-5 .............................................................................................................................................................................. 6
Date- 2066-5-14 .......................................................................................................................................................... 6
a) Cheque purchase:................................................................................................................................................... 6
b) Policies regarding investment:............................................................................................................................. 7
Circular-7 .............................................................................................................................................................................. 7
Date- 2066-6-4............................................................................................................................................................. 7
a) Balance calculation during CRR Dashain: ......................................................................................................... 7
b) Issue of approved loan: ........................................................................................................................................ 7
Circular-8 .............................................................................................................................................................................. 7
Date- 2066-6-4............................................................................................................................................................. 7
Subsidiary company: .................................................................................................................................................. 7
Circular-9 .............................................................................................................................................................................. 8
Date- 2066-6-7............................................................................................................................................................. 8
Withdrawal of action: ................................................................................................................................................ 8
Circular-11 ............................................................................................................................................................................ 8
Date- 2066-6-29 .......................................................................................................................................................... 8
Average deposit: ......................................................................................................................................................... 8
Circulars No.12 ................................................................................................................................................................... 8
Issued Date: 2066/07/13 .............................................................................................................................................. 8
Renewal of margin type lending .............................................................................................................................. 8
Underwriting of share and debenture..................................................................................................................... 8
Representative of CEO............................................................................................................................................. 9
Circulars No 13 ................................................................................................................................................................... 9
Issued Date: 2066/07/18 .............................................................................................................................................. 9
Circular No. 14 .................................................................................................................................................................... 9
Issued Date: 2066/07/20 .............................................................................................................................................. 9
Circular No. 15 .................................................................................................................................................................. 10
Issued Date: 2066/07/22 ............................................................................................................................................ 10
Conditions for establishment of subsidiary company........................................................................................ 10
Document to be submitted to NRB for establishment of subsidiary company ............................................ 10
Activities to be executed by subsidiary company ............................................................................................... 10
Activities not to be done by the subsidiary company ........................................................................................ 10
Circular No. 16 .................................................................................................................................................................. 11
Issued Date: 2066/07/22 ............................................................................................................................................ 11
Circular No. 17 .................................................................................................................................................................. 11
Issued Date: 2066/07/23 ............................................................................................................................................ 11
50% should be women............................................................................................................................................ 11
Circular No. 18 .................................................................................................................................................................. 11
Issued Date: 2066/08/02 ............................................................................................................................................ 11
Circular No. 19 .................................................................................................................................................................. 12
Issued Date: 2066/08/08 ............................................................................................................................................ 12
Capital Plan ............................................................................................................................................................... 12
SOL ............................................................................................................................................................................ 12
Circular No. 20 .................................................................................................................................................................. 12
Issued Date: 2066/09/02 ............................................................................................................................................ 12
SOL on Real estate .................................................................................................................................................. 12
Amendment in the form 9.3 (a )and 4 (a) ............................................................................................................ 13
CD Ratio ................................................................................................................................................................... 13
Merchant Banking.................................................................................................................................................... 13
IC purchase for 'D' Class Institution .................................................................................................................... 14
Circular No. 21 .................................................................................................................................................................. 14
Issued Date: 2066/09/05 ............................................................................................................................................ 14
Circular No. 22 .................................................................................................................................................................. 14
Issued Date: 2066/09/09 ............................................................................................................................................ 14
Circular no: 23 ................................................................................................................................................................... 14
Issue date 2066/09/22 .............................................................................................................................................. 14
Circulars No 24 ................................................................................................................................................................. 15
Circulars No 25 ................................................................................................................................................................. 15
Circulars No 26 ................................................................................................................................................................. 16
Circular no: 27 ................................................................................................................................................................... 16
Circular no 28 .................................................................................................................................................................... 18
Circular no 29 .................................................................................................................................................................... 18
Circular no; 30 ................................................................................................................................................................... 19
Circular no 31 .................................................................................................................................................................... 19
Circular no 32 .................................................................................................................................................................... 19
Circular no 33 .................................................................................................................................................................... 20
Circular 34 :Opening a foreign Branch by commercial bank.( Apllicable to A class Bank only) ........................ 20
Circular 35 Cash deposit for LOI licencing policy ...................................................................................................... 20
Circular 36: Could not be opened .................................................................................................................................. 20
Circular 37: ......................................................................................................................................................................... 20
Circular 38: Transfer of promoter’s Right Share and clarification on SLR ............................................................. 21
Circular 39: Investment in BFIs by NRN and Revision in refinancing facilities .................................................... 21
Withdrawn of Provision ................................................................................................................................................ 22
Circular 40: Withdrawl of actions against 5 willful defaulters on loan of Nepal Bank Ltd. ................................. 22
Issued Date:2067/1/6 ................................................................................................................................................... 22
Circular 41: Ammendment in annex 4(a), Sale of Promoter Share and addition in unified 12-66, CRR ........... 22
Issued Date:2067/1/8 ................................................................................................................................................... 22
Credit Deposit Ratio ..................................................................................................................................................... 23
Sale of Promoter Share 10-66(14) ............................................................................................................................... 23
Addition in unified 12-66 2(2.1) .................................................................................................................................. 23
12-66 point no. 4 Process for black listing. ............................................................................................................. 23
13-066 (CRR Point no. 1) .............................................................................................................................................. 23
Direction no. 9 form 9.9 is deleted related to CRR. .................................................................................................. 24
Circular 42: CRR ............................................................................................................................................................... 24
Issued Date:2067/1/27 ................................................................................................................................................. 24
Circular 43 Revision on unified directives 2-66 point 9 and 10-66, point 16 ......................................................... 24
Issued Date:2067/1/31.................................................................................................................................................. 24
Applicable to restructure and rescheduled loans ................................................................................................. 24
Circular 44: Export Refinancing Facility(Applicable to A class bank) ..................................................................... 25
Circulars No 45 ................................................................................................................................................................. 25
Circular-1
Date- 2066-4-16
Withdrawal of action: Not applicable; related to NBL
Circular-2
Date- 2066-4-19
a) Provision relating to black listing:
Employees, CEO, or Promoters, who has taken loan equal or more than 25,00,000 and fails to pay
shall be listed in black list until they do not pay the cash penalties.
Circular-3
Date- 2066-4-30
a) Single obligator limit:
Fund based limit: 25% of primary capital.
Combination of without fund-based limit and fund based limit (in total): 50% of primary capital.
However, it will be 25 % of primary capital at end of Ashad 2067.
For third and more time: 300% of the penalty of first time.
Circular-4
Date- 2066-5-7
Withdrawal of action: Not applicable; related to NICC
Circular-5
Date- 2066-5-14
a) Cheque purchase:
The bank cannot purchase the cheque with family member of promoter or employee. If such cheque
is purchased or collected, it shall be cashed within three days.
b) Policies regarding investment:
Held for trading;
This is short-term investment, which gives profit on market fluxion. It shall be valued on market to
market on daily basis. The difference is shown in p/l account. It is reported with form no.4.12.1
Note: Short-term investment means investment made for the period less than 1 month.
Held to maturity:
Investment normally retained to its maturity is classified under this class. It is valued on amortized
cost. The actual cost and amortized cost (i.e. impairment) is adjusted in p/l account. The reporting
form is 4.12.2
Available for sale:
Investment not included in held for trading and held to maturity is investment for sale. They are
valued on market to market on regular basis. The difference shall be adjusted is reserve. For the
purpose investment, adjustment reserve can create. The reporting form is 4.12.3.
Circular-7
Date- 2066-6-4
a) Balance calculation during CRR Dashain:
For the balance, counting during Dashain Ashoj 11 to Ashoj 24 is taken as a week.
Circular-8
Date- 2066-6-4
Subsidiary company:
Licensed development bank, creating a subsidiary company of class D, shall issue loan (karja) to
deprived sector. In this regard, the following conditions are to be fulfilled:
The promoters of bank must acquire minimum 51% and maximum 70% shares of subsidiary
company.
The financial statement of subsidiary company must be incorporated with the financial
statement of main company.
Capital adequacy shall be calculated separately for subsidiary company. Moreover, unified to
main company. The consolidated capital adequacy rate for this purpose is 11%.
The transaction between main company and subsidiary company should be based on arms
length transaction. That intercompany transaction is will be disclosed as related party transaction.
The subsidiary company having licensed for micro finance must issue its at least 30% shares to
public.
Circular-9
Date- 2066-6-7
Withdrawal of action: Not applicable; related to NBL
Circular-11
Date- 2066-6-29
Average deposit:
Average deposit means the average of each day-end deposits. This is applicable from 2066/07/01.
This circular clarifies the circular no. 5 point no. 3 issued on 2066/5/14, which allows interest
calculation on weekly, monthly, quarterly or based on any other prescribed time.
Circulars No.12
Issued Date: 2066/07/13
Repayment of 50% of margin lending loan, payment of interest (interest should not due)
Circulars No 13
Issued Date: 2066/07/18
Mobile Banking Service
Circular No. 14
Issued Date: 2066/07/20
Approval required for appointing foreign technicians
Approval from Deparment of Labour is necessary for appointing foreigner as seconded staff for
Technical Service.(Labour Act and Rules)
Circular No. 15
Issued Date: 2066/07/22
Subsidiary of Merchant Banking
1. Disclosure of related party transaction by both parent and subsidiary company is necessary.
2. Auditing of subsidiary company to be done by auditors listed on NRB
3. Consolidated financial statement to be prepared by parent company.
4. Exemption in cases of investment on 10% of issued capital in one organized institution, if
share is distributed to public within two years after commencement of its operation.
Circular No. 16
Issued Date: 2066/07/22
Withdrawl of action against willful defaulter.
Action against default on repayment of loan taken from Everest Bank Limited by Sidheshwori
Industries Pvt Ltd, related persons Hari Prakash Budhathoki, Shailendra Prakash Budhathoki and
Rama Budhathoki has been withdrawn by NRB as on 2066/07/10.
Circular No. 17
Issued Date: 2066/07/23
Extension of operation area by Limited Banking, NGO's
Circular No. 18
Issued Date: 2066/08/02
Technical Service Agreement, TSA for Technology Transfer
Related to joint venture of bank and financial institutions.
Circular No. 19
Issued Date: 2066/08/08
Amendment in capital plan & Single obligatory limit (SOL)
Capital Plan
Previous deadline 2067 Ashad
Amendment Till 2067 Chaitra
SOL
2.1 Before 2067,Shrawan 1
Fund Based and Non Fund Based- 25% of Core Capital (Amendment as per circular
no.19, applicable date 2067, Magh 1)
Circular No. 20
Issued Date: 2066/09/02
Limit on Real Estate, Amd 9.3,4.a, CD Ratio, Interest Bearing Ac, Merchant Bank, IC
Purchase for D
1.3. Percentage on total loan within the limit prescribed for respective time frame
a. Restructuring or renewal of the above said loan cannot be done if it crosses the limit stated
above for respective time frame.
b. If loan is provided for multi-residential houses by one bank or leading bank under
consortium financing, any down payment or amount after opening a booking is to be deposited in
the above said bank or lead bank.
CD Ratio
CD Ratio should be 80% and if the limit is above the prescribed percentage, then it should be
brought within the limit stated below for the respective time frame.
Merchant Banking
If approval from Securities Board is done previously before issue of directive and circular and the
bank and financial institution has not completed its three years, it shall not hinder the bank and
financial institution to establish a subsidiary company.
IC purchase for 'D' Class Institution
'D' Class Institution can buy Indian Currency from public and is allowed to sell only to bank and
financial institutions.
Circular No. 21
Issued Date: 2066/09/05
Amendment in Standing Liquidity Facility
Interest calculation
Interest is calculated on the above rate on the basis of whichever is higher . 3% of penal interest is to
be charged on the above rate calculated.
Circular No. 22
Issued Date: 2066/09/09
Period to be taken as week for the purpose of CRR
Circular no: 23
Issue date 2066/09/22
1. Revision in clause 6.2 of licensing policy, 2063
a. Application and other relating document is to be provided to NRB for its approval to
establish bank and financial institution. If NRB is satisfied with the provided document then, it shall
give approval for establishing bank and financial institution with conditions or without it within 120
days after receiving application.
b. Minimum 5% of total share capital declared to subscribe by the promoters is to be deposited
within 7 days after being ordered by NRB to open a bank a/c.
c. Within 30 days after receiving letter of intent, 45% of declared share capital is to be
deposited in cash or bank guarantee. Bank guarantee for less than one year is not accepted .
d. Bank should prepare its physical infrastructure and certificate of commencement of its
operation to be taken within 9 months after receiving letter of intent.
e. Number of promoters cannot be added after letter of intent is received. if any promoter is
dead then, his/her portion of share is transfer to his/her beneficiary. Beneficiary can subscribe all or
some portion of shares and if only some portion is subscribed then, the remaining no of share is to
be sold to the existing promoters.
f. After receiving letter of intent, if any promoters do not want to subscribe the shares or less
no shares is subscribed than declared, then the unsubscribed shares are distributed amongst the
existing promoters.
g. After letter of intent is received, if any proposed promoter dies then any changes on
composition of promoters shares cannot be done except approval is given by NRB.
Circulars No 24
Issued date: 2066/09/28
Share kept aside for public offering cannot be sold to promoter, directors and their families.
But, if shares are not fully subscribed by the public within the said time period then, it can be sold to
promoters, directors and their families.
Any shareholders who subscribed promoter's shares may not take position on election of Directors
other than the promoter group.
Circulars No 25
Issued date: 2066/09/29
Extension of time to streamline beyond geographical area lending
Previous Deadline: 2066, Poush
Circulars No 26
Issued date: 2066/10/07
If A, B and C class financial institution could not maintain the ratio of Capital Fund
as prescribed by the NRB in its directive then, punishment under Prompt Corrective Action
related policy, 2064 is imposed.
If D class financial institution could not maintain the ratio of Capital Fund then, the BOD within 45
days should give explanation and document regarding capital planning and program about maintaining the
prescribed ratio to NRB.
Dividend and bonus shares cannot be distributed to the shareholder until prescribed ratio of Capital Fund is
maintained.
In middle of any F/Y, if the prescribed ratio of Capital Fund is not maintained but at the end of that
F/Y prescribed ratio is maintained then, also dividend and bonus share cannot be distributed.
If the financial statement is audited from external auditor at the end of F/Y and according to the auditor the
ratio of Capital Fund maintained is satisfactory then as per the approved capital plan dividend and bonus
shares can be distributed.
If PCA is implemented between the end of F/Y and approval of financial statement by AGM, no
dividend and bonus share can be distributed and declared even if ratio of Capital Fund is satisfactory and
external auditor certifies the financial statement.
Circular no: 27
Issue date 2066/10/27
Foreign currency transaction, Amd in ca frame work, Amd in anusuchi 4, 30
a. 'B ', 'C' and 'D' class bank and financial institution can perform work relating to inward
remittance.
b. 'B and 'C' Class bank and financial institution can buy and sell Indian currency.
d. National level 'B' class bank can buy and sell foreign currency, open foreign account and
nostro account.
e. 'B and 'C' class bank and financial institution can act as an agent of approved bank for
issuing Nepalese and Indian currency's Debit and Credit card.
f. B class financial institution except national level 'B' class bank can buy foreign currency and
sell to NRB or commercial banks only.
2. Amendment in schedule 1.1, para 6.4[a(6)], form no 1,3 & 6 relating to Capital Adequacy
Framework,2007 has been done. Form no 8 relating to Net liquid asset to total deposit ratio has
been added. (Related to A class bank and financial institution).
Where the bank's net liquid asset to total deposit ratio is less than 20%, a risk weight of 1% (as given
in the table below) of total deposit, for each percent or portion of percent shortfall in such ratio, is
added to total of the Risk Weighted Exposures.
Net liquid asset to total deposit A risk weight to be added to the Risk
ratio Weighted Exposures
For this purpose, liquid assets include cash and bank balances, money at call & short notice,
placement upto 90 days and investment in government securities. Borrowings repayable upto 90
days is deducted from liquid assets to obtain net liquid assets.
3. Amendment in the schedule 4.30ka(1), 4.30(kha) and 4.30(gha) has been done again.
(Previously by circular no 2, issued date 2066/4/19).
Circular no 28
Issue date 2066/11/10
Withdrawal of action against 6 willful defaulters.
Kisan Dhanwat
Circular no 29
Issue date 2066/11/10
Revision on margin type lending
a) The respective bank has to margin call due to change in market price of share, it shall bring in to
limit with in 21 days, giving a notice to loan borrower.
But: decrease in market price below 10% of original price shall not be considered.
b) The bank has to collect the margin call with in prescribed time. Such time shall be prescribed in
notice of margin call.
c) If the margin call is not collected as per the notice, the bank can sell such shares through stock
exchange with in 7 days from the expiry of time prescribed in notice.
d) If the loan is still unsettled, the bank shall make 100% provision for remaining portion of loan.
Note: margin type lending shall be renewed if the borrower refunded at least 25% of loan taken and
all the interest accrued to the date.
Circular no; 30
Issue date 2066/11/26
Postponement to Deposit in Yuba Sworojgar
Bank and financial institute have to postpone the deposit to Yuva Sworojgar Kosh from 2066
Chaitra. But this notice may not restrict to deprived sector lending.
Circular no 31
Issue date 2066/12/16
Deposit mobilization to D Class financial institution
' D' class financial institution transacting in retail micro banking can mobilized deposit from public if
certain conditions are fulfilled.
Maximum 5 times of Core Capital can be mobilized from the general public.
Saving and 2 years fixed deposit can only be made a source of financing from public.
Maximum 20% of total deposit can be mobilized as source of financing through any firm,
company of organized institution.
Circular no 32
Issue date 2066/12/18
Net liquid assets, derivatives investment
A and B Class financial institutions can transact in derivative such as forward, options, swap, futures
if it is done within the standard prescribed by BOD.
New share can be issued to public share if it is done within the prevailing Laws of Securities.
Circular no 33
Tables…
Promoter should submit deposit slip of 45% of amount of share capital which they have promised to
purchase. The bank should be A class licensed institutions.
Deposit should be made within 30 days of getting letter of intent.
Non performing loan should be less than 5%
Liquid assets should be at least 20%.
Institution should fulfill the minimum requirement of paid-up capital within specified period. The
amount deposited cannot be used before getting license.
The interest earned from deposit can be used only on the basis of VAT and PAN bill.
Institutions should get license within period of 12 month of getting letter of intent by fulfilling all the
requirement of law and necessary infrastructures. Otherwise letter of intent will be cancelled.
Circular 37:
Issued Date: 2066/12/31
Ammended in 1,2 and 20
Banks are required to report to NRB their capital adequacy computations, according to the format as
specified in Annexure of this framework on a monthly basis within one month after the end of the month or
as required by NRB from time to time. All such returns has to be validated by the internal auditor of the
bank. If the monthly internal audit couldnot be carried out, it should be disclosed on the monthly returns.
But, such returns at the end of the quarter must be submitted with the validation from the internal auditor of
the bank. Annex 1.1 (7.4)
Directives 2 Classification of Loan and Advances
Ammendment in Directives 20
Bank and financial institutions should disclosed th sentence ‘A’, ‘B’ ‘C’ ‘D’ class licenced institution from
Nepal Rastra Bank instead of A B C D class licenced institutions only.
Withdrawn of Provision
Non performing loan should be less than 5% if the bank and financial institutions utilize re financing
facility.
The promoter of bank and financial institutions should not be provided re loan if he has utilized
more than 20 % of total share ownership as loan.
Person Involved:
Krishna Pun
Naresh Pun
Circular 41: Ammendment in annex 4(a), Sale of Promoter Share and addition
in unified 12-66, CRR
Issued Date:2067/1/8
Credit Deposit Ratio
Addition of point 4.5, credit deposit ratio in annex 4(a) of directives 4-66 (Unaudited Quterly
Financial Report)
Bank and finaancial institutions can tranfer or sale promoter within promoter or transfer to
other persons if the promoter shareholder holds less than 2% of paid up capital of bank.
New shareholder should be fulfill fit and proper test.
For the promoter holding more than 2% of paid up capital, transfer is not possible by means
of break up. For this type of transfer, permission from NRB is necessary.
Quaterly Report should be submitted by licenced institutions by filling up form for following loan within 15
days of quarter end.
If condition is fulfilled as per directives, whatever be the amount of loan, bank and fianancial
institutions can recommend the name of defaulters for black listing to credit information cell.
Credit information cell will blacklist the within 15 days.
If condition is fullfilled as per directives, in recommendation of bank and financial institutions, CIC
can blacklist credit card customer within 15 days.
Bank and financial institutions can blacklist the customer having whatever amount of loan only if it
blacklist the person having loan more than 25 lakhs.
If bank and fianancial institutions recommend to blacklist, CIC should blacklist the customer having
any amount of loan.
For the purpose of CRR, cash in transit(CIT) in Rastriya Banijya Bank and Nepal Bank Limited can be
utilized in case there is not Nepal Rastra Bank in that area.
Deposit in cash reserve and withdrawl from cash reserve, respective bank and fianancial institutions should
send statement to cash management department and also in monitoring department. This transactions should
be included in weekly statements of cash reserve as per ammended direction form no. 13.1.
In the following cases, extra loan loss provision should not be maintained.
1. Ratio of ordinary share to total capital after rescheduling should not be less than ratio of ordinary
share to total capital before rescheduling.
2. There should be no addition in new shareholder in promoter group except for the bank and financial
institutions which has to increase its capital to prescribed limit within the period of 2070.
3. Ordinary/Special resolution should be passed in AGM or EGM according to prevailing law of
respective bank and financial institutions.
4. If already given consent, will be accordingly.
5. The bank and financial institutions which has got permission for increasing ratio of promoter share
according to Directives 10/066 (16) circular 3/066 point no. 15 should not convert promoter share into
ordinary share.
6. Record should be kept and disclosed in yearly financial statements of each financial year.
Circulars No 45
Issued date: 2067/02/10
Addition in Merchant Banking, BOD of subsidiary, Credit to organized promoters of 'D' class
financial institution
Application to NRB for letter of intent and approval for establishing subsidiary
company is to be forwarded to NRB. In addition to it, MOA and AOA of Subsidiary Company is to
be submitted.