Bank and Financial Institution Act, 2073 (2017) with MCQs [ Bank and Financial Institution Act, 2073 (NRB) ]
personAnil Pandit
November 01, 2024
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1. What is the purpose of the Bank and Financial Institution Act, 2073?
2. Which body enacted the Bank and Financial Institution Act, 2073?
3. In which year was the Bank and Financial Institution Act, 2073 published in the Nepal Gazette?
4. The Act was enacted by Legislature-Parliament under which Article of the Constitution of Nepal?
5. Which ministry published the Bank and Financial Institution Act, 2073 in the Nepal Gazette?
6. What date corresponds to Baishakh 10, 2073 in the Gregorian calendar?
7. The Bank and Financial Institution Act, 2073 primarily regulates which of the following?
8. Which of the following is NOT a primary focus of the Bank and Financial Institution Act, 2073?
9. Under which part of the Nepal Gazette is the Bank and Financial Institution Act, 2073 published?
10. The Bank and Financial Institution Act, 2073 was enacted for the information of which of the following?
11. What is one of the main objectives of the Bank and Financial Institution Act, 2073 as stated in the preamble?
12. According to the preamble, the Act aims to protect and promote the rights and interests of which group?
13. The Bank and Financial Institution Act, 2073 aims to provide quality banking and financial services to the public through:
14. What aspect of the national economy does the Bank and Financial Institution Act, 2073 seek to make more sustainable and strong?
15. What is meant by the term "Court" in the context of banking regulations?
16. Who does the term "Chairperson" include according to these definitions?
17. A "License" in banking refers to:
18. Which of the following best describes a "Licensed transaction"?
19. A "Bank or financial institution" is:
20. "Significant Ownership" refers to:
21. The term "Borrower" refers to:
22. In banking, "Credit" includes:
23. Who is referred to as the "Chief Executive"?
24. The term "Office" includes:
25. "Net worth" is defined as:
26. Who is a "Non-executive Director"?
27. A "Current account" allows:
28. What does "Capital Fund" refer to?
29. "Infrastructure Development Bank" is defined as:
30. A "Letter of credit" is:
31. What is the "Memorandum of Association"?
32. "Primary Capital" includes:
33. The term "Acquiring Institution" refers to:
34. "Acquisition" in banking refers to:
35. "Bank" as per the definition includes:
36. "Banking and financial transaction" means:
37. "Bonus Share" is defined as:
38. "Fixed Account" is:
39. What is meant by "Rastra Bank"?
40. "Targeted Institution" refers to:
41. What is an "Audit Committee"?
42. "Dividend" refers to:
43. A "Liquidator" is:
44. "Leasing" is defined as:
45. What does "Electronic transaction" include?
46. What is a "Prospectus" in the context of a bank or financial institution?
47. What does "Branch Office" mean according to the definition provided?
48. A "Shareholder" in a bank or financial institution refers to:
49. Who is considered a "Director" according to the provided definition?
50. The term "Promoter" refers to a person who:
51. An "Affiliated person" in a bank or financial institution includes:
52. What is the role of an "Independent Director"?
53. Who is considered a "Creditor" in the context of liquidation?
54. A "Hypothecation Loan" involves which of the following?
55. What is required for a person to incorporate a bank or financial institution?
56. Which of the following institutions does NOT need to be incorporated under the new Act?
57. Who must grant prior approval to incorporate a bank or financial institution in Nepal?
58. Which of the following documents must be submitted to obtain prior approval for a new bank or financial institution?
59. According to the Act, which financial information about the applicant must be disclosed?
60. Who is NOT eligible to receive prior approval for incorporating a bank or financial institution?
61. Which of the following statements must be provided by the applicant for a bank or financial institution?
62. If the applicant is a corporate body, which additional documents must be submitted?
63. Which of these is NOT allowed to incorporate a bank or financial institution?
64. What is the time frame for Rastra Bank to respond to an application for prior approval to incorporate a bank or financial institution?
65. Who must register a bank or financial institution as a public limited company to carry on financial transactions?
66. What is NOT required for banks or financial institutions that were already operating before the commencement of the new Act?
67. What must be submitted to the Rastra Bank along with the application for prior approval?
68. Which of the following is a requirement for foreign banks to incorporate a bank or financial institution in Nepal?
69. Within how many days should the Rastra Bank respond to an application for incorporation of a foreign bank or financial institution?
70. Which of the following conditions can lead to the denial of prior approval for incorporating a bank or financial institution?
71. What must a foreign bank submit to open a branch office in Nepal?
72. Which of the following is NOT a reason for the Rastra Bank to deny prior approval?
73. What additional commitment is required from foreign banks opening a branch in Nepal?
74. In what timeframe must the Rastra Bank grant approval to a branch office of a foreign bank for carrying out financial transactions in Nepal?
75. Before a bank or financial institution offers its securities to the public, it must:
76. If the Rastra Bank does not receive written approval from the Securities Board, it:
77. A bank or financial institution must set aside what minimum percentage of its total issued capital for the general public?
78. If shares allotted to the general public are not sold within the stipulated time, they may:
79. What percentage of shares may a bank or financial institution allot to its employees?
80. For the issuance of any debenture or financial instrument, a bank or financial institution must:
81. Upon entering into an agreement for securities dealing with any institution, a bank or financial institution must submit a copy of the agreement to the Rastra Bank within:
82. Promoters of a bank or financial institution cannot sell or pledge shares registered under their ownership for at least:
83. Under which condition can shares be sold or transferred among promoters within the five-year period?
84. After how many years can promoter shares be converted into ordinary shares with the approval of the Rastra Bank, considering the impact on the market?
85. If a company holds less than what percentage of a bank or financial institution's paid-up capital, it does not need Rastra Bank approval for selling or mortgaging the shares?
86. Before a public offering of its securities, a bank or financial institution must:
87. Who is required to allot a minimum of 30% of its total issued capital to the general public?
88. What percentage of shares may be allotted to employees of a bank or financial institution?
89. When calling upon the public to subscribe to shares, what is the payment requirement?
90. The Rastra Bank will not register a prospectus until it receives:
91. Which individual is restricted from buying or selling securities in a bank or financial institution?
92. Under what condition can a promoter of a bank or financial institution sell or pledge their shares after five years?
93. Who is restricted from purchasing the shares of their own bank or financial institution?
94. Which of the following is a valid circumstance for a bank to buy back its own shares?
95. A capital redemption reserve fund must be established when:
96. For a bank to be eligible to buy back its shares, the buy-back ratio should not exceed:
97. After a share buy-back, within how many days must the bank or financial institution cancel the shares?
98. A bank or financial institution intending to buy back shares must submit an application to the Rastra Bank detailing:
99. After buying back shares, the details of the transaction must be filed with the Rastra Bank within:
100. Which of the following cannot be pledged or mortgaged as per the provisions?
101. According to the Act, a bank or financial institution should have a Board of Directors consisting of how many members?
102. Who appoints the Directors of a bank or financial institution before the first Annual General Meeting?
103. What happens if a Director’s position becomes vacant before the Annual General Meeting?
104. Can a corporate body subscribing shares in a bank appoint more than one Director?
105. Who among the Board members is selected to be the Chairperson?
106. The maximum term of office for a Director in a bank or financial institution is:
107. How many consecutive terms can an Executive Chairperson or Managing Director serve after the commencement of this Act?
108. What is the minimum work experience required for a person with a bachelor’s degree to become a Director?
109. Which one of the following is NOT a required qualification for a Director?
110. What qualification is specified for an Independent Director?
111. What is the minimum academic qualification for an Independent Director in a class “A” bank or national-level class “B” development bank?
112. For class “B” development banks (excluding national level) and financial institutions of class "C," what is the minimum academic requirement for an Independent Director?
113. Which of the following statements is true regarding the qualifications of an Independent Director in a class "D" microfinance institution?
114. A person is disqualified from becoming a Director if they:
115. Which of the following disqualifies a person from becoming a Director of a bank or financial institution?
116. A person blacklisted due to a transaction with a bank can be eligible to be a Director after:
117. Which of these individuals is disqualified from becoming a Director of a bank?
118. A person who is an employee of which of the following organizations is disqualified from becoming a Director?
119. Which of these individuals would be disqualified from becoming a Director due to non-payment of dues?
120. An individual convicted of fraud can become eligible to be a Director after:
121. A person holding more than 0.1% share ownership in the concerned bank or financial institution is:
122. Which of the following would disqualify a person from becoming a Director due to involvement in other businesses?
123. Which of the following functions is NOT a duty of the Board of Directors of a bank or financial institution?
124. Who has the authority to create sub-committees within a bank or financial institution?
125. According to the Act, the Board of Directors can delegate their power to all the following EXCEPT:
126. For how many years can the Chief Executive's tenure be extended, according to the Act?
127. What is required if the Board of Directors decides to remove the Chief Executive due to unsatisfactory performance?
128. A Director is personally liable for actions that are:
129. Which of the following must a Director avoid in the Board meetings?
130. To be eligible for appointment as Chief Executive, the candidate must have:
131. The Board of Directors must notify which entity within seven days of appointing a new Chief Executive?
132. In which situation can Rastra Bank order the removal of a Chief Executive?
133. Who is responsible for implementing the decisions of the Board of Directors in a bank or financial institution?
134. Which of the following is the Chief Executive required to submit to the Board of Directors for approval?
135. According to the duties of the Chief Executive, human resources should be managed according to:
136. The Chief Executive must ensure compliance with the:
137. What is the Chief Executive accountable for according to the law?
138. Which statement is true regarding the Chief Executive's responsibility to the Board of Directors?
139. Which of the following is NOT a duty of the Chief Executive?
140. Who does the Chief Executive aim to protect through their actions?
141. The Chief Executive must submit which of the following on time?
142. In matters of senior management norms, the Chief Executive must:
143. What action can the Rastra Bank take if a bank violates the Rastra Bank Act or its directives?
144. Which of the following is a possible regulatory action that the Rastra Bank may take against a bank or financial institution?
145. Under what circumstance can the Rastra Bank revoke the license of a bank?
146. If a bank’s Director or Chief Executive is found not working in the interest of depositors, what action can the Rastra Bank take?
147. What is the maximum fine per day that the Rastra Bank can impose on a bank failing to submit necessary documents after two weeks of delay?
148. Where must the fines collected by the Rastra Bank be deposited?
149. What is the first step the Rastra Bank must take before imposing a fine on a bank?
150. For how long must a Director, official, or employee pay any amount incurred due to recklessness or negligence after receiving the order?
151. What action is taken if a Director or official does not pay the required amount within the stipulated time?
152. How long does a bank have to start operations after obtaining a license before it risks suspension or revocation by the Rastra Bank?
153. What is the maximum punishment for an offense under Clause (a) of Sub-Section (1) of Section 103?
154. According to the text, if the offense falls under Clause (b) of Sub-Section (1) of Section 103, the offender shall face:
155. If the claimed amount is not revealed while imposing fines under Clauses (a) to (e) of Sub-Section (1), what range should the fine fall within?
156. Who is liable for punishment if an offense is committed by a firm, company, or corporate body?
157. In what case would the property kept or concealed in the name of family or relatives be confiscated?
158. What percentage of shareholders must be represented to file an appeal against actions taken under Section 99 or 100 on a bank or financial institution?
159. When filing an appeal against personal actions or fines, what is required by the Director, official, or employee?
160. After being removed from a bank or financial institution, for how long is a Director, official, or employee prohibited from holding a similar position?
