Section 100: Punishment for Violation of the Bank’s Regulation

1) In case any commercial bank or financial institution licensed by the Bank violates an order or directive issued by the Bank under this Act or under the regulations or bylaws framed thereunder, the Bank may impose one or more of the following punishments on such a commercial bank or financial institution:

(a) Giving a reprimand or a written warning,

(b) Obtain an undertaking from the Board of Directors to adopt reformative measures,

(c) Issuing a written order to end frequent violations, to abstain from such violations and to adopt reformative measures,

(d) Suspend or terminate the services of the Bank’s employees,

(e) Prohibit a commercial bank or financial institution from distributing dividends to its shareholders,

(f) Prohibit commercial banks or financial institutions from accepting deposits or granting loans and advances,

(g) Imposing full or partial restrictions on the transaction of business of the commercial bank or financial institution,

(h) Suspend or revoke the license of the commercial bank or financial institution.

2) Where a Director or official or employee of a licensed commercial bank or financial institution violates an order or directive issued by the Bank under this Act or under the regulation or bye-law framed there under or in cases where, they have acted against the interest of the depositor or general public or where they failed to submit the documents, particulars, data required by the Bank or the inspecting or supervising official within the time prescribed, the Bank may impose the following punishments to such Director, official or employee:-

(a) Giving a reprimand or written admonition,

(b) Suspending,

(c) Imposing a cash fine not exceeding five hundred thousand rupees,

(d) Giving an order to the Board of Directors of the concerned commercial bank or financial institution to stop payment of all benefits, including remuneration and allowances,

(e) Giving an order to the Board of Directors of the concerned commercial bank or financial institution to remove the Director from his office or to terminate the services of an officer or employee.