Safe Transaction Bill Passed with Amendments by Finance Committee

The Finance Committee of the House of Representatives has passed the ‘Safe Transaction (First Amendment) Bill, 2080’ with amendments in today’s meeting.

Committee Chairman Santosh Chalise confirmed that the bill was passed after discussing the amendments proposed by the National Assembly and House of Representatives lawmakers. He also directed the committee secretariat to prepare the amendment report within two days.

Six lawmakers—Ranendra Baraili, Nisha Dangi, Damodar Poudel Bairagi, Madhav Sapkota, Sobita Gautam, and Prem Suwal—had proposed amendments to the bill. However, lawmakers Suwal and Dangi were absent during the discussion, according to Chairman Chalise.

The Ministry of Finance introduced this bill in the National Assembly on Falgun 4, 2080 BS, emphasizing the need for secure and systematic legal provisions related to secured transactions. The current Secure Transactions Act, 2063 BS, regulates secured transactions for movable and intangible assets.

The bill introduces provisions related to the obligations of movable, immovable, tangible, and intangible assets. It will allow loans to be secured not only by immovable assets like houses and land but also by movable assets such as livestock, agricultural products, food products, and minerals.

The new bill expands the definition of movable assets to include fixed assets, minerals permitted for excavation, intellectual property, and other tangible or intangible assets. Previously, banks and financial institutions could only offer loans against immovable property, but this bill will allow pledging movable assets for loans.

The bill further specifies that details of collateral other than consumer goods will be considered sufficient. It defines “security” as an obligation to pay or an ancillary obligation under a promissory note, including obligations in secured sale agreements, deeds, or power of attorney.

The amendments will enhance the flexibility of the financial sector, allowing individuals and businesses to secure loans against a broader range of assets, fostering greater access to credit.