Section 2: Definitions

Unless the subject or context otherwise requires, in this Act,

(a) “Bank” means a bank licensed by Nepal Rastra Bank to carry out “A” category financial transactions, pursuant to prevailing law.

(b) “Banking Offence” means the offences as stipulated under Chapter 2.

(c) “Financial Institution” means a financial institution licensed by Nepal Rastra Bank to carry out “B”, “C”, and “D” category financial transactions, pursuant to prevailing law.

(d) “Institution” means a firm or company eligible to maintain a bank account with the banks or financial institutions, pursuant to the prevailing laws. The term also denotes other Organised Institutions or agencies established under the prevailing laws.

(e) “Borrower” means a person, firm, company or Organised Institution incorporated under prevailing law, which borrowed from a Bank or Financial Institution. The term also denotes the person who has provided a guarantee.

¹(f) “Cooperative organisation or association” means a cooperative organisation or association that has obtained permission from Nepal Rastra Bank to conduct banking transactions pursuant to Sub-section (2) of Section 26 of the Cooperative Act, 2048.

¹(g) “Dhukuti transaction” means a transaction conducted by raising money from each other and taking turns to receive or give money on the basis of an agreement.

¹(h) “Financial system” means a bank or financial institution, a cooperative organisation, an institution engaged in financial intermediation, an institution engaged in securities, services and barter transactions, an institution engaged in insurance and security transactions, and an institution engaged in collective fund transactions, and the overall financial system including the services, payment and settlement systems provided by such institutions, established and operating in accordance with the law for the purpose of conducting any banking or non-banking financial transaction.

¹(i) “Authorised person” means a person or official authorised to make the final decision in the course of any transaction.

(j) “Family member” means the husband, wife, son, daughter, adopted son, adopted daughter, father, mother, stepmother of the founder, director, shareholder deemed to have a financial interest in accordance with the prevailing law, chief executive officer, employee, managing agent or related person of a bank or financial institution, and this term also refers to the elder brother, younger brother and younger sister who are to be maintained by the latter.

^{1 Amended by the First Amendment.}