Class "D" licensed institution & Infrastructure Development Bank (Section 49 Subsection 5) Functions

 

Class "D" licensed institution

Subject to BAFIA and the MOA/AOA, and limits, conditions and directives issued by the Rastra Bank, the Class "D" financial institution may carry on the following financial transactions: 

a) Disbursing micro-credit, with or without any movable or immovable property as the collateral or security, for operating any micro-enterprise prescribed by NRB to any group or a member thereof which/ who have regularly saved for the period and maintained the prescribed saving: 

b) Obtaining loans or grants from any bank or financial institution or native or foreign organization, and use such loans or grants for the supply of micro-credit of for making the same effective;" Provided that approval of Rastra Bank shall be obtained prior to obtaining loans or grants from any foreign organization.

c) Prior to disbursing micro-credits, evaluating the schemes for which micro-credits have been requested and determining whether or not they are feasible;

d) Providing necessary services and consultation to groups with regard to mobilization of micro finance; 

e) Carry out necessary actions for recovery of the micro credits on time; 

f) Subject to the limit prescribed by the Rastra Bank, accepting deposits and refund such deposits; 

g) Issue shares, debentures, bonds for the purpose of meeting the capital fund requirements subject to the limitations, conditions and directives prescribed by the Rastra Bank;

h) Exchanging with the Rastra Bank or any other bank or financial institutions particulars of, information or notices on debtors or customers who have obtained credit or any kind of facility from it and other bank or financial institutions;

i) Carry out such other functions as may be prescribed by the Rastra Bank.

Infrastructure Development Bank (Section 49 Subsection 5)

Subject to BAFIA and the MOA/AOA, and limits, conditions and directives issued by the Rastra Bank, the Infrastructure Development Banks may carry on the following transactions:

a) Disbursing loans and financing in shares in projects concerning infrastructure development; 

b) Financing in securities of the companies operating projects concerning infrastructure development;

c) Opening letters of credits and issue guarantees for purchase, sale and installation of machines, instruments and tools required for construction and operation of projects concerning infrastructure development; 

d) Issuing financial instruments in national or foreign currencies with approval of the Rastra Bank for collecting fund for investment in projects concerning infrastructure development;

e) Mobilizing resources by accepting long term deposits or issuing debenture subject to directives issued by NRB

f) With approval of NRB carry out leasing transactions g) Provide loans and other facilities to projects having accepted guarantee of foreign banks and BIF

h) Carry out other acts as prescribed by NRB