no limit in deposit collection for a class
In case of borrowings, licensed institution can mobilize up to 1/4th of its total deposit liabilities.
Institutional Deposit
only 10% of total deposit from single entity
licensed institution cannot hold more than 50% of its total deposits from government institutions, public limited companies, cooperatives, and institution-operated funds.
call deposit up to 10% of total domestic currency deposit for A class and for other 15
Dormant account: Saving account -> 3 years, Current account -> 1 year
KYC necessary while dormant active and if kyc already updated only application is enough and also kyc can be done electronically.
Banks can close dormant accounts (zero balance, no transactions for 10 years) after public notice, and details must be on the bank's website.
Banks must report dormant accounts (inactive for 10 years) to the central bank annually (within first month of FY end), publish notices every five years in national newspaper/ website to come and receive such amount, and transfer unclaimed deposits to the Banking Development Fund after 20 years.
not claimed dividends within five years, must publish their details in a national newspaper within a month after the fiscal year ends. If still unclaimed, the amount must be transferred to an "Unclaimed Dividend Account," recorded, published collectively, and reported to the central bank.
can open saving accounts for entity whose motive is not to earn profit like non-profit organization
no cheque book in call accounts
for each individual fd, saving account is mandatory and interest and maturity amount should be deposited in saving account without no delay upon maturity.
PAN compulsory for FD above 50 lacs to individual
Debenture :- bank with no accumulated loss exceeding 5% of its primary capital (as per the last audited financial statement) must apply to NRB for approval to issue debentures or other debt instruments up to 100% of its primary capital
issued Agricultural Bond and Energy bond collected amount must be invested in same sector within 3 years. First year : 30%, Second Years: 60%, third year: 100%
can issue Perpetual Non-Cumulative Preference Share
A class BFI can't put deposit in other bank and earn interest. But B and C class can open call ac. Further can open account like provident fund account. Also for collection of amount from primary or secondary share issue for short time.
collecting more deposit than prescribed, fine: bank rate * excess amount. And for CEO: 1 Lac personally
should issue public share within 3 years of its operation
can provide insurance facility in saving accounts without collecting extra amount from customer for providing insurance and all TC should be made clear to customer before opening such ac.
not allowed to conduct any gift, lottery, competition, or reward programs to attract financial customers for deposit collection or business expansion
* must ensure that deposits up to NPR 5 lakh in the names of individuals in savings and fixed deposit accounts are protected by the "Deposit and Loan Protection Fund."
Foreign investors can open fixed deposit accounts (minimum for 1 year, can't take loan against it) for earned dividends in Nepal, but repatriation of the deposit and interest is allowed only with approval from the Foreign Exchange Management Department
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