Section 110: Power to Frame Rules and Bylaws

1) In order to implement the objectives of this Act, the Bank shall, having obtained approval of the Government of Nepal, frame necessary Rules on the following matters:

(a) Foreign Exchange Transaction,

(b) Refund of the burnt, torn, defaced or mutilated banknotes and coins,

(c) Transaction of business between the Government of Nepal and the Bank,

(d) Other necessary matters which the bank thinks necessary to implement the objective of this Act.

2) In order to implement the objectives of this Act, the Board may frame byelaws on the following matters:

(a) The venue and time of the meeting of the Board and procedures relating thereto,

(b) Formation of sub-committees by the Board as per necessity and procedures of such sub-committees,

(c) Appointment, promotion, transfer, dismissal, remuneration and facilities, pension, gratuity, provident fund, leave, conduct and discipline and terms and conditions of service of the employees of the Bank,

(d) Delegation of authority by the Board to the Governor, by the Governor to the Deputy Governor or other employees of the Bank,

(e) The terms and conditions for the lease agreements to be concluded on behalf of the Bank,

(f) The use of the seal of the Bank,

(g) The accounts, ledger, registrars, books and other records and documents to be maintained by the Bank and the format thereof,

(h) Internal auditing and inspection of the Bank,

(i) Supervision of commercial banks and financial institutions,

(j) The particulars to be submitted by commercial banks and financial institutions,

(k) Cash deposit of the Bank or responsibility for the cash,

(l) The case to be filed on behalf of the Bank or the operation of other transactions of business,

(m) Credit control,

(n) The Bank’s system of expenditure,

(n1) Regarding merging the commercial bank and financial institution, or merging with one another.

(n2) Regarding quick reformative action of commercial banks and financial institutions,

(n3) Regarding credit information.

(n4) Regarding payment and account settlement.

(n5) Regarding carrying out clearing and settlement.

(n6) Regarding the license to be issued by the Bank.

(o) Other necessary subjects, which are necessary to implement the objective of this Act.

3) Except for the subject matters referred to in sub-sections (1) and (2), the Governor shall issue the order, direction, procedures, and guidelines to be issued under this Act.

4) The Bank shall forward, for the information of the Government of Nepal, the bylaw framed under sub-section (2) and the order or directive issued under sub-section (3).

5) The Bank shall publish and transmit the bylaw framed under sub-section (2) or an order or directive issued under sub-section (3).