Functions, duties and powers of institutions
The functions, duties and powers of the institutions shall, in addition to the functions, duties and powers set forth elsewhere in this Act, be as follows:
(a) To encourage the persons with low income to form groups,
(a1)13 To collect micro-savings from groups or members of groups,
(b) To disburse micro-credit without or without taking security or guarantee of any movable, immovable property to a group or the members of a group to carry on a micro-business,
(c) To obtain loans or grants from the Government of Nepal or14 a bank or native or foreign organization, association etc. and to use such loans or grants in the disbursement of micro-credit or in the activities making such act effective, 15Provided, however, that in obtaining loans, grants or other assistance from a foreign organization, association etc, the institution has to obtain approval of the Government of Nepal through the Bank.
(d) Prior to disbursing the micro-credit, to evaluate the work for which the credit has been demanded, and identify whether such a work is feasible or not,
(e) To make publicity about the micro-businesses which are of such nature as to bring about improvement in the economic condition of the persons with low income,
(f) To hold symposia about the micro-business, give training to formulate projects, render assistance, provide technical knowledge and bring about technical assistance as per necessity,
(g) To provide necessary services to the groups in relation to the mobilization of the micro-saving and16 micro-credit,
(h) To take necessary action towards the recovery of micro-credit in time,
(i) To make inquiry, from time to time, into whether the microcredit has been properly utilized or not, and if, in the course of making such inquiry, it appears that the micro-credit has not been utilized properly, to give necessary direction or take necessary action17
(j) To perform such other functions as prescribed in relation to the collection of the micro-saving and18 disbursement of the micro credit,
(k) To act as an agent of a commercial bank or financial institution.