Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
BAFIA 2073
Presented By
Anil Rasaili
Kusum Bhandari
Arbind Pathak
Prabin Acharya
Historical Perspective of Banking
Acts in Nepal
 Nepal Bank Limited established in 1937 AD.
 Nepal Rastra Bank act was f...
DISPUTE OVER BAFIA 2073
 The central bank formed a taskforce under the
coordination of NRB Executive Director Bhaskar Man...
WHY BAFIA ?
 Nepal Rasta Bank have formulated many directives,
monetary policies, company act, Nepal Rasta Bank act
for b...
..
 The amendment of BAFIA was done in 2063 but that
was not enough. The new amendment covers area like
the issues of cor...
Issued Capital for General Public
and Employees (Chapter 3, Section 9)
 Every bank or financial institution shall set asi...
Conversion of Promoters Shares
into Public Shares
 BAFIA 2073 has also a provision which allows
conversion of promoter sh...
Provision related to Board of Directors
(Formation)
 The Board shall consist of not less than five and not
more than seve...
Provision related to Board of Directors
(Qualification) (Chapter 4, Section 16)
 Having minimum 5 years experiences of BO...
Provision related to Independent Directors
(Qualification) (Chapter4,Section17)
 For ‘A’ and ‘B’(National Level) Class BF...
Provision related to Board of
Directors
 Members of Parliament (MP) and Person having
Constitutional Appointment are not ...
Qualifications of Chief Executive
Officer (Chapter 4, Section 29, Sub-section 5)
 Having gained at least Master Degree in...
Tenure Of BOD and CEO
In Case of BOD (Chapter 4, Section 15, Sub-section 1)
Independent Directors :- For Only One Tenure....
Classification of Banks
 Commercial Banks ‘A’ Class
 Development Bank ‘B’ Class
 Finance Companies ‘C’ Class
 Laghubit...
Other Notable Changes
 Remove the provision regarding Conversion of
licensed institution of higher class into licensed
in...
Implementation of BAFIA 2073
 Nepal Rastra Bank says it will take at least one year to
fully implementation of BAFIA 2073...
Changes Still Need to Address
 Banking System Under Federal System in Nepal
 Power of CEO Vs. Board of Director
THANK YOU
BAFIA Major AMENDMENT 2073
Upcoming SlideShare
Loading in …5
×

BAFIA Major AMENDMENT 2073

30,712 views

Published on

BAFIA major amendment.

Published in: Business
  • Hi there! I just wanted to share a list of sites that helped me a lot during my studies: .................................................................................................................................... www.EssayWrite.best - Write an essay .................................................................................................................................... www.LitReview.xyz - Summary of books .................................................................................................................................... www.Coursework.best - Online coursework .................................................................................................................................... www.Dissertations.me - proquest dissertations .................................................................................................................................... www.ReMovie.club - Movies reviews .................................................................................................................................... www.WebSlides.vip - Best powerpoint presentations .................................................................................................................................... www.WritePaper.info - Write a research paper .................................................................................................................................... www.EddyHelp.com - Homework help online .................................................................................................................................... www.MyResumeHelp.net - Professional resume writing service .................................................................................................................................. www.HelpWriting.net - Help with writing any papers ......................................................................................................................................... Save so as not to lose
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THE BOOK INTO AVAILABLE FORMAT (New Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://urlzs.com/UABbn } ......................................................................................................................... Download Full EPUB Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download Full doc Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download PDF EBOOK here { https://urlzs.com/UABbn } ......................................................................................................................... Download EPUB Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... Download doc Ebook here { https://urlzs.com/UABbn } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THE can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THE is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBOOK .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, CookBOOK, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, EBOOK, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THE Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THE the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THE Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • ...My Scandalous Secret to Crushing The Odds So Effortlessly...  https://bit.ly/2UD1pAx
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I think Mike Cruickshank's new Profit Maximiser service is going to be one of the big hits and I can say hand on heart, if you follow the instructions, and just get involved, you will make a lot of money over the coming weeks, months and years. ●●● http://t.cn/A6hPRSfx
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

BAFIA Major AMENDMENT 2073

  1. 1. BAFIA 2073 Presented By Anil Rasaili Kusum Bhandari Arbind Pathak Prabin Acharya
  2. 2. Historical Perspective of Banking Acts in Nepal  Nepal Bank Limited established in 1937 AD.  Nepal Rastra Bank act was formulated in 2012. (Amendment 2058)  Bank and Financial Institution Act,2063  Banking Offence and Punishment Act, 2064
  3. 3. DISPUTE OVER BAFIA 2073  The central bank formed a taskforce under the coordination of NRB Executive Director Bhaskar Mani Gnawali to prepare the draft of the new BAFIA.  The bill, was first tabled by the then finance minister Ram Sharan Mahat in August 2013.  The bill had drawn widespread criticism due to involvement of some lawmakers who also have ownership in bank and financial institution.  Finally Bill pass by Parliament in Poush 26 2073 and approved by President Baisakh 12. (Source:- Arthiknews.com, Baisakh 12)
  4. 4. WHY BAFIA ?  Nepal Rasta Bank have formulated many directives, monetary policies, company act, Nepal Rasta Bank act for bank and financial institution.  Before these acts’ it was necessary of such act which would define bank and financial institution clearly so BAFIA was formulated by Parliament.  The act is amended time and again to address the changes in Banking Industry.
  5. 5. ..  The amendment of BAFIA was done in 2063 but that was not enough. The new amendment covers area like the issues of corporate governance, Concept of Infrastructure Development Bank.  Protect and promote the right and interest of depositors, provide quality and reliable banking and financial intermediately through healthy competition.
  6. 6. Issued Capital for General Public and Employees (Chapter 3, Section 9)  Every bank or financial institution shall set aside at least thirty per cent of its total issued capital for subscription by the general public. The bank or financial institution may set aside a maximum of five per cent of the shares so set aside for its employees. (BAFIA 2063)  The bank or financial institution may set a maximum of 0.5 % of the shares from remaining so set for its employees.
  7. 7. Conversion of Promoters Shares into Public Shares  BAFIA 2073 has also a provision which allows conversion of promoter shares into public shares after a lock-up period of 10 years (Chapter 3, Section 11, Subsection 4)  Notwithstanding Clause 9 sub-section 1 and 2 Bank and Financial Institutions can convert its promoter shares into public shares after the commencement of 10 years with considering the situations of Capital Market , Banking and overall Financial sector. (Subject to NRB for prior approval)
  8. 8. Provision related to Board of Directors (Formation)  The Board shall consist of not less than five and not more than seven Directors. (Chapter 4, Section 14) Conditions (Chapter 4, Section 15)  More then one member from same family are not eligible for BOD.  In case of Independent Directors person of his/her family who subscribed more then 1 % shares of concern BFI’s are not eligible for Independent Directors of BFI’s.  Same person does not eligible for different BFI’s Board of Directors.
  9. 9. Provision related to Board of Directors (Qualification) (Chapter 4, Section 16)  Having minimum 5 years experiences of BOD of foreign or national Banks and Financial institutions,  Or working experience of 3 years at officer level of Nepal Government.  Or minimum Master Degree Qualification in respective subjects prescribed by NRB.
  10. 10. Provision related to Independent Directors (Qualification) (Chapter4,Section17)  For ‘A’ and ‘B’(National Level) Class BFI’s Graduated in respective subjects as prescribed by NRB.  For ‘B’ (Other except National Level) and ‘C’ Class BFI’s Undergraduate in respective subjects as prescribed by NRB.  For ‘D’ Class BFI’s qualification of Independent Directors as prescribed by NRB.
  11. 11. Provision related to Board of Directors  Members of Parliament (MP) and Person having Constitutional Appointment are not eligible for Board of Directors and Chief Executive Officer(CEO) of BFI’s. (Chapter 4, Section 20)  BOD from other licensed institutions which mainly deals with deposits and Insurance transactions are not eligible for BOD of BFI’s at same time frame. (Chapter 4, Section 18, sub-section 5)
  12. 12. Qualifications of Chief Executive Officer (Chapter 4, Section 29, Sub-section 5)  Having gained at least Master Degree in Management, Banking, Finance, Monetary, Commerce, Statistics, Accountancy , Mathematics, Administration or Law.  Or having gained Bachelor Degree any one from above course or Chartered Accountant and 10 years of experiences.
  13. 13. Tenure Of BOD and CEO In Case of BOD (Chapter 4, Section 15, Sub-section 1) Independent Directors :- For Only One Tenure. In Case of CEO (Chapter 4, Section 29, Sub-section 2)  First appointment is maximum for 4 years. Can re- appoint for next one tenure. BOD have authority to fire CEO if performance is not satisfactory.
  14. 14. Classification of Banks  Commercial Banks ‘A’ Class  Development Bank ‘B’ Class  Finance Companies ‘C’ Class  Laghubitta Bittiya Sanstha (Micro Finance Institutions) ‘D’ Class  Infrastructure Banks (Chapter 7, Section 49, Sub-Section 5)
  15. 15. Other Notable Changes  Remove the provision regarding Conversion of licensed institution of higher class into licensed institution of lower class (BAFIA 2063, Chapter 5, Section 37)  ‘D’ Class Microfinance banks are not allowed to write them as Bank. As per Chapter 7 section 49 sub-section 4 ‘D’ BFI’s will term as Laghubitta Bittiya Sanstha.  Voluntary Cancellation of BFI’s
  16. 16. Implementation of BAFIA 2073  Nepal Rastra Bank says it will take at least one year to fully implementation of BAFIA 2073. (NRB spokesperson Narayan Poudel, Bizmandu May 8)  Ichharaj Tamang , Chairperson Civil Bank Limited resign from his post because of conflicting interest with Chapter 4, Section 20.  Devi Prasad Bhattachan, Chairperson of Prabhu Bank and Prabhu Insurance resign from Prabhu Insurance Chairperson because of conflicting interest with Chapter 4, Section 18, sub-section 5.
  17. 17. Changes Still Need to Address  Banking System Under Federal System in Nepal  Power of CEO Vs. Board of Director
  18. 18. THANK YOU

×