Section 84: Inspection and Supervision

1) The Board shall frame and implement an inspection and supervision bylaw conforming to the international standard for inspection and supervision of the commercial banks and financial institutions licensed by the Bank.

2) The Bank may, at any time, inspect and supervise or cause to inspect and supervise any of the offices of commercial banks or financial institutions. Such inspection and supervision may be carried out by the deputed official of the Bank or an expert designated by the Bank at the office of the commercial bank or financial institution, or by asking the concerned institution to submit detailed particulars and information to the Bank itself.

3) It shall be the duty of the concerned commercial bank and financial institution or Directors, officials or employees of such commercial bank and financial institution to make available the statement, data, record, information, particulars necessary for computer and auditing and other programs and particulars developed through the electric system and financial control system or necessary other documents to such official, expert or the Bank or to enable such official or expert to review or to examine them within the time prescribed by such officer or expert.

4) The inspecting and supervising official or the Bank under this Section may cause to be recorded written statements of any Director, official or employee of the commercial banks or financial institutions with regard to the functions and proceedings which are deemed necessary in the course of inspection and supervision.

5) The Bank or the inspecting and supervising official may issue necessary directives to the commercial bank or financial institution on the matters deemed necessary while inspecting and supervising. It shall be the duty of the concerned commercial bank or financial institution to abide by the directives issued by the Bank or by the inspecting or supervising officials. The inspecting or supervising official shall inform the Bank as soon as possible about the directives so given.

*6) The official or the expert who carries out inspection and supervision as per this Section shall have to submit the report of the inspection and supervision carried out by him/her to the Governor within the stipulated deadline.

7) The report submitted pursuant to sub-section (6) should be submitted at the next meeting of the Board.

8) The Board may, after making an appropriate decision on matters contained in the report submitted pursuant to sub-section (7), issue appropriate directions to the Governor about the actions to be taken in the matter. It shall be the responsibility of the Governor to implement or cause to implement such directions.

* Amended by the Second Amendment.