Section 79: Circumstances leading to Mandatory Liquidation of Bank or Financial Institution

The bank or financial institution may be subjected to mandatory liquidation in the following circumstances:-

(a) In case the matured deposit or the deposit to be repaid immediately or other financial liability could not be paid on time and is due,

(b) In case the capital fund of the bank or financial institution is negative,

(c) In case the Rastra Bank recommends for liquidation of a bank or financial institution based on an inspection report of the bank or financial institution,

(d)In case the shareholders with significant ownership or officials of a bank or financial institution frequently commit acts causing obstruction against the rights and interests of the depositors for the development of the financial system,

(e) In case of frequent violations of this Act and directives given by the Rastra Bank,

(f) In other situations, as determined by the Rastra Bank for mandatory liquidation of banks or financial institutions.