Section 32: Use of Name of Bank or Financial Institution

1) No one shall use the name of a bank or financial institution for the purpose of carrying on banking and financial transactions without obtaining approval from the Rastra Bank.

2) Any person, company, or institution shall not be entitled to use in its name words such as “bank”, “banking”, “finance”, “financial”, or other words or symbols or adjectives indicating a similar meaning without getting prior approval from the Rastra Bank, except the bank or financial institution having obtained license to carry on banking and financial transaction pursuant to Section 49 of this Act and a foreign bank or financial institution opening a branch office in Nepal.

3) Notwithstanding anything contained in sub-section (2), the provision as referred to in sub-section (2) shall not be applicable in the case of the following organisation:-

(a) Any organisation established or recognised according to law or international agreement or practice,

(b) The company submitting an application for carrying on banking and financial transactions within six months of incorporation.

4) Notwithstanding anything contained in sub-section (2), any bank or financial institution having obtained approval to carry on financial transactions according to the prevailing laws during the commencement of this Act may carry on financial transactions by using the name prevailing at the time of approval.

5) Financial institution of Class “B”, “C” and “D” shall use the name as “development bank”, “finance company” and “micro finance financial institution” respectively.

6) The bank or financial institution having used the name of micro-finance development bank before the commencement of this Act shall use the name as referred to in Sub-section (5) after the commencement of this Act