Section 2: Definition

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

(a) “Bank” means the Nepal Rastra Bank established under Section 3.

(b) “Board” means the Board of Directors of the Bank constituted under Section 14.

(c) “Director” means a member of the Board, and this expression also includes the Governor and Deputy Governors.

(d) “Governor” means the Governor of the Bank appointed under Section 15.

(e) “Deputy Governor” means the Deputy Governor of the Bank appointed under Section 16.

(f) “Commercial Bank” means a commercial bank established under the prevailing laws.

(g) “Financial Institution” means a financial institution established under the prevailing laws with the objectives of providing loans for agricultural cooperative, industrial or any other specific economic purpose or of collecting deposits from the general public and this term also includes an institution prescribed as financial institution by Government of Nepal upon publishing notice in the Nepal Gazette.

(h) “Money” means all types of currency notes, postal orders, postal notes, money orders, cheques, drafts, traveller’s cheques, letters of credit, bills of exchange, promissory notes and credit cards. This term also includes similar types of monetary instruments that the Bank may prescribe, as required, through the publication and transmission of public notices.

(i) “Currency Note” means the bank note in circulation in the form of cash, and this expression also includes coin.

(j) “Foreign Currency” means a currency other than the Nepalese currency, and this term includes the special drawing rights on the International Monetary Fund, the Asian Currency Units, the European Currency Units and other instruments as the Bank may prescribe, as per the requirement, by publication and transmission of public notice.

(k) “Nepalese Currency” means the currency of the Nepalese rupee denomination.

(l) “Convertible Foreign Currency” means the foreign currency, which has been prescribed by the Bank as convertible foreign currency, as per the requirement, by publication and transmission of public notice.

(m) “Foreign Exchange” means foreign currency, all types of deposits, credits, stocks, foreign securities payable in foreign currencies and the cheques, drafts, traveller’s cheques, electronic fund transfer, credit cards, letters of credit, bills of exchange, promissory notes in international circulation payable in foreign currencies; and this expression also includes whatsoever, type of other monetary instrument as the Bank may prescribe, as per the requirement, by publication and transmission of public notice.

(n) “Foreign Exchange Transaction” means the acts of purchase and sale of foreign exchange or the acts of borrowing, giving credits, and of accepting or providing foreign exchange in any manner whatsoever, and this expression also includes the Act of granting approval for foreign exchange by the Bank.

(o) “License holder” means an individual, firm, company or institution that has obtained a license from the Bank for a foreign exchange transaction.

(p) “Letter of credit” means an instrument issued by a bank to another bank instructing it to accept a cheque, draft, hundi or bill of exchange drawn by a specified person up to the limit of a specified amount.

(q) “Securities” means share, stock bond, debenture, debenture stocks issued by any corporate body or a certificate of unit saving scheme or collective saving scheme (mutual fund) or transferable certificate of deposit issued by a corporate body in accordance with laws, and this expression also include the securities or receipt of deposit (pledge) of such securities, and interest in securities prescribed by Government of Nepal upon publishing notification in the Nepal Gazette.

(r) “Negotiation” means the Act of transferring an instrument to any person having the right to hold negotiable instruments, enabling him/her to become a bearer.

(s) “Negotiable Bill of Exchange” means a letter of credit, a bill of exchange or cheques.

(t) “Bill of Exchange” means an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person or to bearer.

(u) “Promissory note” means an instrument signed by a person with an undertaking to pay, without any condition, a fixed amount to any particular person referred to in such instrument or to the person ordered by such person or to the bearer of such instrument on a fixed date or demand.

(v) “Cheque” means a bill of exchange drawn on any bank ordering it to make a demand payment.

(w) “Credit” means a direct or indirect promise to invest money and the right to recover such amount of investment in return and the interest of such credit or payment of other charges, the refinance given against the security of credit or investment restructuring and renewal of credit, the guarantee made for repayment of credit or any other promise for such repayment, and this expression also includes any debt.

(x) “Account” means the record, registers and books to be maintained as per prevailing laws to keep the record of transactions, and this expression also includes other documents to prove the said transactions.

(y) “Credit security” means any bill of exchange of indebtedness and any other instrument equivalent to such instruments of indebtedness, whether in certified or in book entry form.

(z) “Monetary liability” means the bank notes and coins in circulation existing in the balance sheet of the Bank.

(z) “International Account Standard” means the account standard at an international level.

(aa) “Employee” means a person holding a post in the Bank, or an individual presently employed in any post of the Bank.

*(aa1) “Court” means the Commercial Bench of the High Court prescribed by the Government of Nepal by publishing a notice in the Nepal Gazette after obtaining consultation of the Supreme Court.

*(aa2) “Special Administration Team” means the Special Administration Team formed as per Section 88 B.

(ab) “Prescribed” or “as prescribed” means prescribed or as prescribed in the Rules or Bylaws framed under this Act.

* Added By the Second Amendment