Kathmandu. Nepal Rastra Bank (NRB) has decided to grant approval to hire purchase companies only after the fit and proper test of the promoters and directors. <\/p>\n
The Nepal Rastra Bank (NRB) has issued the Sixth Amendment to the Policy and Procedural Provisions for Approving Companies Issuing Hire Purchase Loans, 2070. According to the amended provision, approval will be given only after the fit and proper test of the proposed promoter shareholders and directors of the company while granting approval to the company issuing hire purchase loan. <\/p>\n
Fit & Proper Test Measurement Bases for Founders and Operators{<\/strong><\/span><\/p>\n Condition considered disqualified<\/strong><\/span><\/p>\n }<\/p>\n (a) Not having attained the age of 21 years, <\/p>\n (b) Multiple or mentally imbalanced, <\/p>\n (c) Unable to repay the debt, <\/p>\n (d) In any transaction with a bank or financial institution that has not completed at least three years from the date of being blacklisted and released from that list, <\/p>\n (e) Has not paid such tax as it is an obligation to pay tax in accordance with the prevailing law, <\/p>\n (f) If convicted by a court of law for a criminal offense involving moral turpitude, not exceeding 5 years from the date of payment of such sentence, <\/p>\n (g) Convicted by a court of law for the offence of corruption or fraud, <\/p>\n (h) Not exceeding 3 years during the period of suspension in the case of a person who has been suspended by the Nepal Rastra Bank and in the case of action, not exceeding 3 years from the date of action. <\/p>\n (i) In the case of an institution which has been suspended or dissolved by taking control of the management of the Nepal Rastra Bank, not later than 3 years from the date of such suspension or dissolution. <\/p>\n <\/strong><\/span><\/p>\n A person who is facing a case in court for misusing loans taken from banks and financial institutions cannot be the founder or director of a company that provides hire purchase loans. <\/p>\n Forgery <\/strong><\/span><\/p>\n }<\/p>\n Such a person shall not be a promoter or director of a company issuing hire purchase loans if it is proved that he has committed dishonesty or malpractice in the functioning of a bank or financial institution. <\/p>\n <\/strong>{TAG_CLOSE_span_30}}<\/p>\n }<\/p>\n According to the prevailing law, a person insolvent cannot be a promoter or director. <\/p>\n Economic status <\/strong><\/span><\/p>\n }<\/p>\n When evaluating the amount that founders propose to invest in the company, they should have the ability to raise additional capital in proportion to the investment made by the founders if their financial condition requires them to run the company. <\/p>\n The promoter of the proposed entity shall not be a market maker or securities broker of the securities market.<\/p>\n","protected":false},"excerpt":{"rendered":" Kathmandu. Nepal Rastra Bank (NRB) has decided to grant approval to hire purchase companies only after the fit and proper test of the promoters and directors. The Nepal Rastra Bank (NRB) has issued the Sixth Amendment to the Policy and Procedural Provisions for Approving Companies Issuing Hire Purchase Loans, 2070. According to the amended provision, […]<\/p>\n","protected":false},"author":16,"featured_media":17888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45117,45159],"tags":[],"class_list":["post-310513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bank-finance-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=310513"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310513\/revisions"}],"predecessor-version":[{"id":310514,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/310513\/revisions\/310514"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/17888"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=310513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=310513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=310513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}