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    BNK211 Banking Law

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    dhitalkhushi
    This course provides an overview of banking laws and regulations in Nepal. It is comprised of 10 units that will familiarize students with concepts like the role of central banks, the structure of banks and financial institutions, major banking laws and regulations, legal provisions for negotiable instruments, the relationship between banks and customers, bank lending practices, and legal challenges in the banking sector. The course materials will introduce students to acts like the Nepal Rastra Bank Act, Bank and Financial Institution Act, and others as well as directives from the central bank.

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    BNK211 Banking Law

    Uploaded by

    dhitalkhushi
    30 views2 pages
    This course provides an overview of banking laws and regulations in Nepal. It is comprised of 10 units that will familiarize students with concepts like the role of central banks, the structure of banks and financial institutions, major banking laws and regulations, legal provisions for negotiable instruments, the relationship between banks and customers, bank lending practices, and legal challenges in the banking sector. The course materials will introduce students to acts like the Nepal Rastra Bank Act, Bank and Financial Institution Act, and others as well as directives from the central bank.

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    BNK211 Banking Law (1)

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    This course provides an overview of banking laws and regulations in Nepal. It is comprised of 10 units that will familiarize students with concepts like the role of central banks, the structure of banks and financial institutions, major banking laws and regulations, legal provisions for negotiable instruments, the relationship between banks and customers, bank lending practices, and legal challenges in the banking sector. The course materials will introduce students to acts like the Nepal Rastra Bank Act, Bank and Financial Institution Act, and others as well as directives from the central bank.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    30 views2 pages

    BNK211 Banking Law

    Uploaded by

    dhitalkhushi
    This course provides an overview of banking laws and regulations in Nepal. It is comprised of 10 units that will familiarize students with concepts like the role of central banks, the structure of banks and financial institutions, major banking laws and regulations, legal provisions for negotiable instruments, the relationship between banks and customers, bank lending practices, and legal challenges in the banking sector. The course materials will introduce students to acts like the Nepal Rastra Bank Act, Bank and Financial Institution Act, and others as well as directives from the central bank.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    BNK 211: Banking Law

    (focus area I)

    Credits: 3
    Lecture Hours: 48
    Course Objectives
    This Course provides an overview of the legislative provision of bank and financial institution, fundamental
    banking laws and regulation. This course familiarize with the basic concept of banking laws in local context
    as well as international market. It highlights major regulation and policies issued by Central bank to protect
    financial system.

    Course Description
    This course contains introduction of banking law, central bank and legal system, structure and formation of
    bank and financial institutions, major banking law, bank regulation and central bank policy for bank FIs,
    legal provision relating to negotiable instrument, bank and customer relationship, bank lending and
    securities, bank lending and securities, legal aspect of trade finance, legal Challenges in banking business.

    Course Details
    Unit 1: Introduction LH 5
    Meaning and concept of bank and financial institutions, Evolution of banking institutions and
    banking law in Nepal, Role of banking institutions for socio-economic development.

    Unit 2: Central bank and Legal System LH 5


    Meaning and concept of central bank, establishment, Composition of BOD in Nepal Rastra Bank,
    Function and legal power of Nepal Rastra Bank, NRB relationship with government and other
    agencies.

    Unit 3: Structure and formation of Bank and Financial Institutions LH 5


    Licensing Policy for bank and FIs, Capital requirement, Eligibility criteria and fit and proper test
    for potential promoter, Types of bank and FIs, Functions of bank and FIs as per BAFIA 2063,
    Composition of BOD, Roles and responsibilities of BOD.

    Unit 4: Major Banking Law LH 6


    Nepal Rastra Bank Act 2058, Bank and Financial Institution Act (BAFIA) 2063, Banking Offense
    Act, 2064, Anti-Money laundering Act, Foreign Exchange Company Act

    Unit 5: Bank Regulation and Central Bank Policy for Bank and FIs LH 5
    Concept, need and significance of regulation, Impact of deregulation, Major prudential regulation
    of central bank- Capital adequacy, Loan classification and provisioning, Corporate governance,
    Blacklisting.

    Unit 6: Legal Provision Relating to Negotiable Instrument LH 4


    Cheque, Draft, bills of exchange, Promissory note, Validity and dishonored of cheque, Right and
    duties of various parties involved in instruments, Impact and legal action for miss using promissory
    note including cheque.
    Unit 7: Bank and Customer Relationship LH 5
    Legal nature of bank and customer relationship, trustee-beneficiary, agent-principal, debtor-
    creditor, special types of customer(individual, corporate, Government, NGO etc) account opening
    and closing procedure. Know Your Costumer- KYC

    Unit 8: Bank Lending and Securities LH 6


    Procedure for bank lending, Credit policy guideline, Credit sanction limit and authority, Legal
    procedure for recall and recovery of banks loan, Meaning and definition of collateral and security,
    Legal features of collateral and security, Generally accepted security in Nepalese banking (land and
    building, goods and commodities, share and debenture, deposit certificate, personal guarantee
    promissory note, saving bond)

    Unit 9: Legal aspect of Trade Finance: LH 4


    Letter of credit, Guarantee, Basic features, Parties involves in various trade finance, Roles and
    responsibilities of parties.

    Unit 10: Legal Challenges in Banking Business LH 3


    Banking fraud, Cyber-crime, Innovative product, Anti-money laundering, Electronic banking,
    global access of banking services

    Text and References


    Gupta, S.N. The Banking law on Theory and Practice, Universal.
    Peter. S. Rose (1999), Commercial Bank management, McGraw-Hill.
    Regmi Resham Raj (2064), Banking law of Nepal, Lumbini Pustak, Kathmandu.
    Padmalatha Suresh, Prof Justin Paul (2010), Management of Banking and Financial Services,
    Dorlingkindersley, India.
    Indian Institute of Banking & Finance (2005), General Bank Management, Macmillan.
    Nepal Rastra Bank Act 2058,
    Bank and Financial institution Act 2063,
    Banking Offense Act, 2064
    Foreign Exchange Act
    Negotiable Instrument Act
    Antimony laundering Act, 2008
    Company Act
    Nepal Rastra Bank-(2015), Unified Directives for Bank and financial institution, NepalRastra Bank,
    Nepal.
    NRB (2005), Nepal Rastra Bank in Fifty Years, Sajha Prakashan, Pulchowk, Lalitpur, Nepal

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