10 Differences between BAFIA 2063 and BAFIA 20732 min read

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BAFIA is an acronym for Banking and Financial Institution Act. BAFIA is an umbrella Act that governs all the activities of banks and financial institutions. BAFIA has been amended in 2073, and there are some differences between BAFIA 2063 and BAFIA 2073. The 10 differences between BAFIA 2063 and BAFIA 2073 has been presented below:

Differences between BAFIA 2063 and BAFIA 2073

10 differences between BAFIA 2063 and BAFIA 2073

SN. BAFIA 2063 BAFIA 2073
1 The bank or financial institution may set a maximum of 5 % of the shares from remaining so set for its employees. The bank or financial institution may set a maximum of 0.5 % of the shares from remaining so set for its employees.
2 Conversion of promoter shares into public shares after a lock-up period of 5 years conversion of promoter shares into public shares after a lock-up period of 10 years
3 The board shall consist of not less than five and not more than nine Directors. The board shall consist of not less than five and not more than seven Directors.
4 A person below 21 is illegible to be a director. A person below 25 is illegible to be a director.
5. ‘D’ Class Microfinance banks are allowed to write them as Bank (Microfinance Development Bank). ‘D’ Class Microfinance banks are not allowed to write them as Bank (Microfinance financial institutions).
6. Provision of Conversion of a licensed institution of higher class into the licensed institution of a lower class. No provision of Conversion of a licensed institution of higher class into the licensed institution of a lower class.
7. No provision of an infrastructure development bank. Provision of an infrastructure development bank.
8. In the case of Independent Directors person of his/her family who subscribed more than 1 % shares of concern BFI’s are not eligible for Independent Directors of BFI’s. In the case of Independent Directors person of his/her family who subscribed more than 0.1 % shares of concern BFI’s are not eligible for Independent Directors of BFI’s.
9. No provision of Voluntary Liquidation. Provision of voluntary liquidation.
10 Qualification of CEO: having gained Bachelor Degree anyone from the above course or Chartered Accountant and 5 years of experiences. Qualification of CEO: having gained Bachelor Degree anyone from the above course or Chartered Accountant and 10 years of experiences.

Source: BAFIA, 2063; BAFIA, 2073

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BAFIA 2063 (PDF)

10 Differences between BAFIA 2063 and BAFIA 20732 min read
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