Debt Recovery of Banks and Financial Institutions Act, 2058

Purpose: To provide a special forum and procedure for recovering loans of banks and financial institutions. Lalmohar 2058/10/17 (Act No. 16 of 2058).

Key provisions:

• Section 3: applies to loans of the Agricultural Development Bank, commercial banks, Nepal Industrial Development Corporation and other financial institutions NRB specifies; it does not apply to loans with principal below Rs 5 lakh.
• Section 4: the Government may establish Debt Recovery Tribunals by notice in the Nepal Gazette.
• Section 8: Debt Recovery Appellate Tribunal.
• Section 15: a BFI that cannot recover a loan files a claim with the Tribunal within the set time.
• Section 16: interim orders; Section 17: the Tribunal must finally decide a case within 150 days of the reply (or of the reply deadline).
• Section 19: appeal; Section 20: settlement allowed; Section 25: recovery by the Debt Recovery Officer; Section 26: liability of guarantors.
• Section 33: power to frame rules (Debt Recovery Rules, 2059).

Amendments: First Amendment 2063, 2066, Second Amendment 2066 and 2072.

When auction under the loan agreement fails, banks file large defaulted loans with the Debt Recovery Tribunal in Kathmandu rather than the ordinary courts.

उद्देश्य: बैङ्क तथा वित्तीय संस्थाको ऋण असुलीका लागि छुट्टै निकाय र कार्यविधि। लालमोहर २०५८।१०।१७, ऐन नं. १६।

मुख्य व्यवस्था:

• दफा ३: कृषि विकास बैङ्क, वाणिज्य बैङ्क, नेपाल औद्योगिक विकास निगम र राष्ट्र बैङ्कले तोकेका वित्तीय संस्थामा लागू; पाँच लाखभन्दा कम साँवा भएको ऋणमा लागू नहुने।
• दफा ४: ऋण असुली न्यायाधिकरण; दफा ८: पुनरावेदन न्यायाधिकरण।
• दफा १५: न्यायाधिकरणमा निवेदन; दफा १७: प्रतिउत्तरपछि १५० दिनभित्र मुद्दा किनारा।
• दफा २०: मिलापत्र; दफा २५: ऋण असुली अधिकृतद्वारा असुली; दफा २६: जमानीको दायित्व।

संशोधन: पहिलो संशोधन २०६३, २०६६, दोस्रो संशोधन २०६६ र २०७२।

धितो लिलामबाट असुल नभएका ठूला ऋणमा बैङ्कहरू ऋण असुली न्यायाधिकरणमा जान्छन्।