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
