Definitions

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Unless the subject or context otherwise requires, in this Act:
(a) “Financial intermediation” means the act of collecting micro  savings and4 providing micro-credit pursuant to this Act.
(b) “Institution” means an institution which has been registered under the Associations Registration Act, 2034(1977) and obtained license to carry out the act of financial intermediation pursuant to this Act.
(c) “License” means the license issued entitling any institution to perform the act of financial intermediation.
(d) “Bank” means the Nepal Rastra Bank established under the Rastra Bank Act, 2058(2002).
(e) 5 “Micro-business” means an income generating business being operated with the involvement of less than ten persons.
(f) “Group” means a group of persons with low income, formed after completing the procedures as prescribed.
(g) “Collective guarantee” means the deed of guarantee executed and delivered to an institution by the other members of agroup undertaking that they shall collectively repay the microcredit if any member of the group fails to repay the micro  credit borrowed by him or her.
(g1)6 “Micro-saving” means the amount of saving to be collected by an institution from the persons or group of persons, who are members of a group and have low income, in such a manner as prescribed by the Bank from time to time.
(h) 7 “Micro-credit” means a credit to be disbursed by an institution within the ceiling as specified by the Bank from time to time for carrying on micro-business.
(i) “Borrower” means a group or any member of a group borrowing micro-credit from an institution.
(j) “Security” means any movable, immovable property furnished by way of a deed as a security, mortgage or otherwise while borrowing micro-credit, pursuant to the prevailing laws.
(k) “Employee” means a person appointed by an institution to work for the institution whether in consideration for remuneration or not.
(l) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules or bye-laws framed under this Act.

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