Section 76: Initiation of Voluntary Liquidation

1) The process of initiation of voluntary liquidation of a bank or financial institution shall be deemed to have been initiated from the date of grant final approval for voluntary liquidation by the Rastra Bank.

2) The bank or financial institution obtaining theoretical approval for voluntary liquidation pursuant to Section 75 shall have to complete the following acts before obtaining final approval of the voluntary liquidation from Rastra Bank:-

(a) All the deposits and liabilities have to be refunded or fulfilled within the set time limit,

(b) Operation of transactions has to be closed down, and no new transaction to be carried on,

(c) Exercise of other powers, except those essential for voluntary liquidation, shall not be allowed.

3) The Rastra Bank may issue necessary directives in the course of carrying out functions pursuant to sub-section (2).

4) In case a person entitled to get payment of the amount and other liabilities pursuant to Clause (a) of sub-section (2) does not come to receive the payment within the prescribed time limit, the said amount shall be deposited to the account as directed by the Rastra Bank.

5) The approval of voluntary liquidation will not cause any type of adverse effect on the rights and interests of the depositors and other creditors.

6)The bank or financial institution opting for voluntary liquidation shall, upon completion of the proceedings of this Act, have to submit to the Rastra Bank an auditing report of such bank or financial institution.

7) The Rastra Bank shall grant final approval for voluntary liquidation to the bank or financial institution that accomplished the function as referred to in this Section. The Rastra Bank shall revoke the license to carry out banking and financial transactions.

8) The amount to be paid by the bank or financial institution opting to voluntary liquidation for the deposits not claimed at the moment shall have to be separately retained as directed by the Rastra Bank.