Class "B" licensed institution functions - Banking Tayaari

 

Class "B" licensed institution

Subject to BAFIA and the MOA/AOA, the limitation and conditions imposed and directives issued by the Rastra Bank, Class "B" financial institution may carry on the following financial transactions, in addition to the financial transactions referred to class "A" bank in clauses (a), (b), (c), (f), (g), (h), (i), (i), (k), (n), (p), (r), (s), (t), (u) and (x):

a) Arrange to jointly disburse credits on the basis of consortium financing in collaboration with other bank or financial institutions in accordance with the mutual agreement entered into for the division of the collateral pari passu;

b) Issuing guarantees on behalf of its customers, having such customers execute necessary bonds in consideration thereof, obtaining security, and acquiring their movable or immovable assets as collateral or on mortgage, or the assets of third persons as collateral; 

c. Issuing, accepting, paying, discounting or purchasing and selling bills of exchange, promissory notes, cheques, traveler's cheques, drafts, etc.

d. Raising loans having mortgaged its movable and immovable assets. 

e. Carrying on transactions of letters of credit and remittance with prior approval

f. Carrying on transactions of transfer of money within Nepal. 

g, Carrying out such other functions as may be prescribed by the Rastra Bankof Rastra Bank.