TYPES OF BANKING OFFENCES

from Banking Offence in Nepal

by Rishan weblinknepal

TIME AND LIMITATION FOR THE LODGMENT OF FIRST INFORMATION REPORT

Unauthorized withdrawals or payments

Abuse or unauthorized use of electronic means for payments

Causing losses through account alterations, ledger manipulations, or forgery.

Borrowers with outstanding dues acquiring assets or opening accounts.

Intentionally stopping credit facilities to harm a borrower's working project.

Misusing banking resources and assets

Conducting illegal banking transactions.

Providing unauthorized loans

Misusing credit facilities.

BANKING OFFENSES CAN BE CLASSIFIED BASED ON THEIR FREQUENCY, AND THE BANKING OFFENCE AND PUNISHMENT ACT, 2064, HAS ENLISTED 14 TYPES OF BANKING OFFENSES. Unauthorized opening of accounts or demanding cash payments

Conducting transactions by misrepresentin g banks or financial institutions.

Engaging in excess, low, or false valuation practices

Engaging in DHUKUTI transactions

Carrying out irregular economic or financial transactions

SECTION 3 OF THE BANKING OFFENCES AND PUNISHMENTS ACT, 2064 STATES THAT, NOT TO OPEN AN ACCOUNT OR DEMAND CASH PAYMENT IN AN UNAUTHORIZED MANNER: NO ONE SHOULD OPEN AN ACCOUNT WITH FALSE DOCUMENTS, CREATE AN ACCOUNT UNDER FICTITIOUS NAMES, OR DRAW A CHECK FROM AN ACCOUNT KNOWING IT LACKS SUFFICIENT FUNDS TO COVER THE AMOUNT.

• Section 5 of the Banking Offences and Punishments Act, 2064 states that, not to make unauthorized withdrawals or payments: while conducting transactions with a bank, individuals must not withdraw money from others' accounts without permission, or transfer funds without authorization from a customer’s account.

Section 10 of the Banking Offences and Punishments Act, 2064 states that, acquiring assets or opening an account by a borrower having over dues: The debtor who is blacklisted should be restricted from opening any new account, except for a thirty-day period dedicated to repaying the loan, withdrawing essential living expenses, or acquiring property for personal sustenance, either within the country or abroad.

SECTION 11 OF THE BANKING OFFENCES AND PUNISHMENTS ACT, 2064 STATES THAT, THE CREDITOR MUST NOT WITHHOLD A LOAN OR FINANCIAL FACILITY IN A WAY THAT HARMS THE ONGOING PROJECT OF THE DEBTOR: ONCE A BANK OR FINANCIAL INSTITUTION APPROVES A LOAN OR FINANCIAL FACILITY FOR A DEBTOR'S PROJECT AND DISBURSES THE FIRST INSTALLMENT, THEY CANNOT HALT THE RELEASE OF THE REMAINING INSTALLMENTS WITHOUT SUFFICIENT JUSTIFICATION AND VALID REASONS.

• Section 12 of the Banking Offences and Punishments Act, 2064 states that, not to make loss by making alteration in the account or ledger or by committing forgery or fraud: It is strictly prohibited to cause any loss to a bank or financial institution by falsifying or forging documents or account books. This includes actions such as signing documents with altered dates, numbers, or transactions to deceive and mislead.

SECTION 12(A)

1)Individuals are prohibited from deceiving the bank and unlawfully taking away movable or immovable property belonging to the bank.

2)It is not allowed to cause any financial loss to the bank through false or fraudulent statements, promises, or any other means that aim to acquire, control, or harm the bank's cash, funds, security bills, or other movable/immovable assets.

3)Engaging in transactions by presenting false information or using deceptive tactics, such as manipulating one’s name with another person's name, with the intention of avoiding punishment or causing harm to a bank or cooperative for personal or others' benefit is strictly prohibited.

SECTION 14 OF BANKING OFFENCES AND PUNISHMENTS ACT, 2064 States that, not to carry out and cause to carry out irregular economic or financial transactions: engaging in misappropriation during economic and financial transactions, with the intention of causing losses to the bank or showing favoritism to any individual, is strictly prohibited.

Section 14(a): Not to perform Dhukuti transaction.

Section 14(b): Cooperatives registered in accordance with the Cooperatives Act, 2048 BS should not do banking business without the approval of Nepal Rastra Bank.