Recovery of Debts of Banks and Financial Institution Act, 2058

What does it do?

• The Act sets up a special, faster route for banks and financial institutions to recover unpaid loans. It applies to commercial banks, agricultural development banks, the Nepal Industrial Development Corporation and other financial institutions designated by Nepal Rastra Bank, but not to loans with principal under Rs 500,000. The government sets up Debt Recovery Tribunals by notice in the Nepal Gazette, each with a law member (who chairs), a banking member and an accounting member, appointed for five years; the banking and accounting members are appointed after consulting Nepal Rastra Bank.ऐनले बैङ्क तथा वित्तीय संस्थाको नतिरिएको ऋण छिटो असुल गर्न विशेष व्यवस्था गरेको छ। यो वाणिज्य बैङ्क, कृषि विकास बैङ्क, नेपाल औद्योगिक विकास निगम र नेपाल राष्ट्र बैङ्कले तोकेका अन्य वित्तीय संस्थामा लागू हुन्छ, तर पाँच लाख रुपैयाँभन्दा कम साँवा भएको ऋणमा लागू हुँदैन। नेपाल सरकारले राजपत्रमा सूचना निकाली ऋण असुली न्यायाधिकरण स्थापना गर्छ; प्रत्येकमा कानून सदस्य (अध्यक्ष), बैङ्किङ सदस्य र लेखा सदस्य पाँच वर्षका लागि नियुक्त हुन्छन्, र बैङ्किङ तथा लेखा सदस्य नियुक्त गर्दा नेपाल राष्ट्र बैङ्कसँग परामर्श गरिन्छ। Nepal Law Commission, Government of Nepal Section 3, p. 3; Sections 4–7, pp. 3–5
• A bank may go to the Tribunal only after it has made enough efforts to settle with the borrower and its own recovery efforts have failed. It must file within four years of a loan becoming overdue (five years from the Act's start for loans already overdue then) and pay a recovery fee of 0.25 per cent of the claim. The borrower gets 15 days to respond, the Tribunal may freeze the collateral and the property of the borrower or guarantor while the case is pending, and it must decide the case within 150 days. The parties can settle at any stage, paying a settlement fee of 0.5 per cent of the claim.ऋणीसँग फछ्र्यौटका लागि पर्याप्त छलफल र प्रयास गरेर पनि आफ्नै प्रयासबाट ऋण असुल हुन नसकेपछि मात्र बैङ्कले न्यायाधिकरणमा निवेदन दिन सक्छ। ऋणको भाखा नाघेको चार वर्षभित्र (ऐन लागू हुँदा भाखा नाघिसकेको ऋणमा ऐन प्रारम्भ भएको पाँच वर्षभित्र) दाबी रकमको ०.२५ प्रतिशत ऋण असुली शुल्क तिरी निवेदन दिनुपर्छ। प्रतिवादीलाई १५ दिनको म्याद दिइन्छ, मुद्दा चलिरहँदा न्यायाधिकरणले धितो वा ऋणी र जमानीको सम्पत्ति रोक्का राख्न अन्तरिम आदेश दिन सक्छ, र १५० दिनभित्र मुद्दा किनारा गर्नुपर्छ। पक्षहरूले जुनसुकै चरणमा दाबी रकमको ०.५० प्रतिशत मिलापत्र दस्तुर तिरी मिलापत्र गर्न सक्छन्। Nepal Law Commission, Government of Nepal Section 14(7), p. 7; Section 15, pp. 7–8; Sections 16–17, p. 8; Section 20, pp. 9–10
• Tribunal decisions can be appealed within 15 days to a Debt Recovery Appellate Tribunal, presided over by a sitting High Court judge, which must decide within 90 days; a borrower who appeals must first deposit 30 per cent of the amount the Tribunal ordered. Both tribunals have court-like powers, including to punish contempt.न्यायाधिकरणको निर्णयउपर १५ दिनभित्र उच्च अदालतका बहालवाला न्यायाधीशले हेर्ने ऋण असुली पुनरावेदन न्यायाधिकरणमा पुनरावेदन लाग्छ, जसले ९० दिनभित्र किनारा गर्नुपर्छ; पुनरावेदन गर्ने ऋणीले न्यायाधिकरणले असुल गर्नुपर्ने ठहर गरेको रकमको ३० प्रतिशत नगद धरौटी राख्नुपर्छ। दुवै न्यायाधिकरणलाई अवहेलनामा सजाय गर्नेसमेत अदालतसरहको अधिकार हुन्छ। Nepal Law Commission, Government of Nepal Sections 8–9, p. 5; Section 19, p. 9; Sections 22–24, p. 10; Section 30, p. 12
• After a decision becomes final, a Debt Recovery Officer (a gazetted second-class or higher government officer) enforces it within the time set: they can seize and auction the borrower's mortgaged or other property and the guarantor's property, and can arrest and detain a borrower or guarantor under the law. A guarantor's liability is limited to the amount guaranteed but can be recovered directly from them. The Act has been amended four times, most recently in 2072; the text summarised is that consolidated version.निर्णय अन्तिम भएपछि ऋण असुली अधिकृत (कम्तीमा राजपत्राङ्कित द्वितीय श्रेणीको सरकारी अधिकृत) ले तोकिएको अवधिभित्र कार्यान्वयन गर्छ: ऋणीको धितो वा अन्य चल–अचल सम्पत्ति र जमानीको सम्पत्ति कब्जा गर्न वा लिलाम गर्न, र कानूनबमोजिम ऋणी वा जमानीलाई पक्राउ गरी थुनामा राख्न सक्छ। जमानीको दायित्व जमानत दिएको रकमसम्म सीमित हुन्छ तर त्यो सिधै जमानीबाट असुल गर्न सकिन्छ। ऐन चार पटक संशोधन भएको छ, पछिल्लो पटक २०७२ मा; सारांश सोही एकीकृत पाठमा आधारित छ। Nepal Law Commission, Government of Nepal Section 21, p. 10; Sections 25–27, p. 11; Section 28, p. 12; title page, p. 1

Where does it conflict with other laws?

No conflict with another law is documented in the sources we have reviewed so far.