Banking Offence and Punishment Act, 2064 to control the Banking & Financial Sector. Banking & Financial Act of Nepal. View all Banking Offence and Punishment Act.
Banking Offence and Punishment Act, 2064
Date of authentication and publication : 23 Magh 2064 (6 February 2008 )
Act number 35 of the year 2064 (2008)
An Act enacted to Provide Legal Provisions in relation to the Banking Offences and Punishments Preamble: Whereas it is expedient to provide legal provisions on banking offences and punishments with a view to promoting trust towards banking and financial system thereby mitigating the consequences and the risks that the banking and financial system may suffer on account of the offences may be occurred in course of transactions of Banks and Financial Institutions be it enacted by the Legislative Parliament.
Chapter-1 Preliminary
- Short Title, Scope and Commencement: (1) This Act may be called “Banking Offence and Punishment Act, 2064 (2008).
(2) This Act shall come into force within Nepal and also to the persons and institutions whomsoever, residing abroad after committing banking offence in Nepal.
(3) This Act shall come into force immediately. Definitions: Unless the subject or context otherwise requires, in this Act;
(a) “Bank” means a bank licensed by Nepal Rastra Bank to carry out “A” category financial transactions, pursuant to prevailing law.
(b) “Banking Offence” means the offenses as stipulated under Chapter-2.
(c) “Financial Institution” means a financial institution licensed by Nepal Rastra Bank to carry out “B”, “C” and “D” category financial transactions, pursuant to prevailing law.
(d) “Institution” means a firm or company eligible to maintain a bank account with the bank or financial institution, pursuant to the prevailing laws and the term also includes other corporate body or agencies established under the prevailing laws.
(e) “Borrower” means a person, firm, company or corporate body incorporated under prevailing law, which borrowed from Bank or Financial Institution and this term also includes the person who has provided guarantee.
Chapter-2
Banking Offences
- Not to open an account or demand cash payment in an unauthorized manner: While opening an account with a bank or financial institution or demanding cash payment, no one shall undertake the following acts:
(a) Open or knowingly allow to open an account by submitting false documents,
(b) Open or allow to open an account in the name of a fictitious or other person or organization, except otherwise permitted by the laws,
(c) Draw a cheque to obtain or to knowingly make payment from an account where he/she has an apparent knowledge that the account does not have sufficient balance to cover the amount of the cheque drawn.
