According to Bank and financial institution act 2073, chapter 7 section49 (4), financial transactions that are allowed to D class financial institutions shall be as follows;
Financial transactions of class D financial institutions
Supplying credit as prescribed by Nepal Rastra Bank.
Supplying micro-credit with or without any movable and immovable properties.
Obtaining loan or grant loan from any licensed institution or native or foreign organizations.
Providing necessary services to a group in respect of the mobilization of micro-credit.
Obtaining credit by pledging its movable and immovable properties as collateral.
Performing such other functions as maybe prescribed by the Nepal Rastra Bank.
As an umbrella to B&FIs, BAFIA 20773 controls, regulate, and manage BFIs. For this course of action, it classified BFIS and their functions, duties, and powers on the basis of BFIS’ transactions nature, capital requirement, scope etc.
