Section 88N: Exchange of Reciprocal Assistance

1) In the course of moving forward, the process of resolution by any commercial bank or financial institution, upon obtaining the prior approval of the Bank, may involve the Special Administration Team requesting assistance from the relevant body of a foreign country as necessary.

2) By obtaining prior approval of the Bank regarding the process of resolution of any commercial bank or financial institution, the Special Administration Team can help in the act and action being performed in another country or can move forward the necessary action to validate the act and action being performed by authorised body of another country on the ground of reciprocity. Claimants shall have to be treated equally while extending such assistance or validating such act and action.

3) Except on the condition that confidentiality have to be maintained and sensitive data shall have to be protected, the Special Administration Team can exchange information, upon obtaining prior approval of the Bank, with the related body of the foreign country regarding recovery of dues, resolution plan etc. of the commercial bank or financial institution remained under the process of resolution.

4) Regarding the resolution of the commercial bank or financial institution having branch or office in the foreign country as well upon being established in Nepal, or any commercial bank or financial institution having branch or office in Nepal upon being established in foreign country, the Bank and the institution that secures deposit insurance also can coordinate, and exchange help reciprocally.

5) After forging reciprocal agreement by the Bank and the institution that secures deposit insurance regarding the resolution being performed by the related body of the foreign country and its plan, if any information or help is sought regarding any incident or problem affecting regarding the commercial bank or financial institution that has fallen into resolution, they can exchange such information or assistance.

6) If any help is to be obtained from or coordination is to be done with the central bank, commercial bank or financial institution or the institution that secures deposit insurance of foreign country on the ground of reciprocity as per this Section, if such help and coordination is needed from the government level, the Bank shall recommend in front of the Government of Nepal to arrange the necessary management regarding this.