Section 22: Functions, Duties and Powers of Board of Directors

1) All functions, duties and powers to be exercised by the bank or financial institution, except those functions to be performed by the General Meeting, shall be vested in the Board of Directors subject to this Act, prevailing laws and the Memorandum of Association and Articles of Association.

2) It shall be the duty of the Board of Directors to operate a bank in the interests of depositors, customers, and general shareholders having taken overall risks management of the bank or financial institution and to make assurance not to intervene in the daily conduct of business such as deposit collection, lending, investing, managing personnel, making expenses from budget having maintained appropriate corporate governance in the bank or financial institution.

3) Other functions, duties and powers of the Board of Directors shall be as follows:-

(a) To frame necessary Byelaws, directives, and procedures and to enforce them subject to this Act, the prevailing laws and directives of the Rastra Bank in order to carry on the functions of bank or financial institution in good order,

(b) To prepare an internal control system and risk management norms for avoiding the emergence of risk or risk-prone situations in transactions of bank or financial institutions and to carry on banking and financial transactions carefully according to its policies and strategies,

(c) To make necessary policy management for carrying out functions of a bank or financial institution and to operate the bank or financial institution in an order and rational manner by carrying out regular monitoring of such functions,

(d) To prepare a clear organisational structure of the bank or financial institution and frame policies and implement it accordingly,

(e) To submit an audit report, including the annual progress report of the bank or financial institution, before the General Meeting,

(f) To carry out other functions as specified by the Rastra Bank from time to time.