RBB Act 2014 - BUDDHISTAN

RBB Act 2014 - Reserve Bank of Buddhistan | Official Legal Document

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*RBB ACT 2014*

The Reserve Bank of Buddhistan Act, 2014

(Act No. 24 of 2014)

[24th March, 2014]

An Act to constitute the Reserve Bank of Buddhistan as the supreme financial authority

WHEREAS it is expedient to establish a central bank for Buddhistan to regulate the financial system, issue currency, and promote monetary stability in accordance with Buddhist principles of ethical governance;

AND WHEREAS it is necessary to consolidate and amend the law relating to banking, currency, and financial institutions under a single regulatory authority;

BE IT enacted by the Buddhist Government of Buddhistan in the Thirty-first Year of the Buddhist Era as follows:—

PART I – PRELIMINARY (Sections 1-4)

PART II – ESTABLISHMENT AND INCORPORATION (Sections 5-12)

PART III – CAPITAL AND MANAGEMENT (Sections 13-18)

PART IV – MONETARY POLICY (Sections 19-25)

PART V – CURRENCY SYSTEM (BRAINLO) (Sections 26-35)

PART VI – REGULATION OF BANKS (Sections 36-48)

PART VII – LICENSING SYSTEM (Sections 49-55)

PART VIII – FOREIGN EXCHANGE (Sections 56-62)

PART IX – DIGITAL BANKING (Sections 63-70)

PART X – GOVERNMENT TREASURY (Sections 71-76)

PART XI – OFFICERS AND STAFF (Sections 77-84)

PART XII – AUDIT AND ACCOUNTS (Sections 85-90)

PART XIII – PENALTIES AND OFFENCES (Sections 91-98)

PART XIV – MISCELLANEOUS (Sections 99-105)

FIRST SCHEDULE – List of Scheduled Banks

SECOND SCHEDULE – Forms of Licenses

THIRD SCHEDULE – Officer Classification

FOURTH SCHEDULE – Fees and Penalties

I PRELIMINARY

1. Short title, extent and commencement.

(1) This Act may be called the Reserve Bank of Buddhistan Act, 2014.
(2) It extends to the whole of Buddhistan.
(3) It shall come into force on such date as the Buddhist Government may, by notification in the Official Gazette, appoint.

2. Definitions.

In this Act, unless the context otherwise requires,—

"Bank" means a banking company as defined in the Banking Regulation Act, 2014; "Brainlo" means the official currency of Buddhistan issued by the Reserve Bank; "Central Board" means the Central Board of Directors of the Reserve Bank; "Governor" means the Governor of the Reserve Bank appointed under section 13; "RBB" means the Reserve Bank of Buddhistan established under this Act; "Scheduled Bank" means a bank included in the First Schedule; "State Office" means the State Head Office of the Reserve Bank established under section 10.

3. Reserve Bank to be the supreme financial authority.

The Reserve Bank of Buddhistan shall be the supreme financial authority in Buddhistan and shall have jurisdiction over all financial institutions, banks, non-banking financial companies, and digital payment systems operating within the territory of Buddhistan.

4. Act to override other laws.

The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.

II ESTABLISHMENT AND INCORPORATION

5. Establishment of Reserve Bank of Buddhistan.

(1) As from the commencement of this Act, there shall be established a bank to be called the Reserve Bank of Buddhistan.
(2) The Reserve Bank shall be a body corporate by the name of the Reserve Bank of Buddhistan, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract and to sue and be sued in its corporate name.
(3) The headquarters of the Reserve Bank shall be at the Capital City of Buddhistan.

6. Incorporation of the Bank.

The Reserve Bank shall be deemed to be incorporated on such date as the Buddhist Government may, by notification in the Official Gazette, appoint.

7. Offices and branches.

(1) The Reserve Bank shall establish offices at the following levels:

Head Office at the Capital City;
State Head Offices in each of the 8 States of Buddhistan;
District Branch Offices in every district;
Rural Service Centers as may be determined by the Central Board.

(2) The Central Board may establish offices or branches at any other place in Buddhistan or outside Buddhistan as it deems fit.

8. Official emblem and seal.

(1) The Reserve Bank shall have an official emblem incorporating the Dharmachakra (Wheel of Dharma) symbolizing the Buddhist principles of ethical governance.
(2) The common seal of the Reserve Bank shall be kept in the custody of the Governor and shall be affixed in the presence of at least two directors.

III CAPITAL AND MANAGEMENT

13. Capital of the Bank.

(1) The capital of the Reserve Bank shall be ten billion Brainlo (฿L 10,000,000,000).
(2) The entire capital shall be vested in and held by the Buddhist Government.

14. Composition of Central Board.

The Central Board of Directors shall consist of the following members, namely:—

a Governor;
four Deputy Governors;
four Directors nominated by the Buddhist Government;
two Directors representing State Governments;
one Director representing the Buddhist Sangha (monastic community).

15. Governor and Deputy Governors.

(1) The Governor and Deputy Governors shall be appointed by the President of Buddhistan on the recommendation of the Finance Minister.
(2) The Governor shall hold office for a term of five years and shall be eligible for reappointment.
(3) A Deputy Governor shall hold office for a term of three years and shall be eligible for reappointment.
(4) No person shall be appointed as Governor or Deputy Governor after attaining the age of sixty-five years.

16. Powers and functions of Governor.

(1) The Governor shall be the chief executive officer of the Reserve Bank and shall exercise all powers vested in the Bank.
(2) The Governor shall have the right to vote in all meetings of the Central Board and in case of equality of votes, shall have a casting vote.

IV MONETARY POLICY

19. Monetary Policy Committee.

(1) There shall be constituted a committee to be called the Monetary Policy Committee of the Reserve Bank.
(2) The Monetary Policy Committee shall consist of:

Governor – Chairperson, ex officio;
Deputy Governor in charge of Monetary Policy – Member, ex officio;
One officer of the Bank to be nominated by the Central Board – Member;
Three external members appointed by the Buddhist Government.

20. Inflation target.

(1) The Central Government shall, in consultation with the Reserve Bank, determine the inflation target in terms of the Consumer Price Index, once in every five years.
(2) The inflation target shall be 4 per cent with a tolerance band of +/- 2 per cent.

21. Monetary policy instruments.

The Reserve Bank shall regulate the monetary policy through the following instruments:

Repo Rate;
Reverse Repo Rate;
Cash Reserve Ratio;
Statutory Liquidity Ratio;
Open Market Operations;
Bank Rate;
Marginal Standing Facility.

Amendment 2025: The tolerance band for inflation has been revised from +/- 2% to +/- 3% for agricultural commodities to support farmers during seasonal variations.

V CURRENCY SYSTEM (BRAINLO)

26. Sole right to issue currency.

(1) The Reserve Bank shall have the sole right to issue currency notes and coins in Buddhistan.
(2) The currency notes and coins issued by the Reserve Bank shall be legal tender throughout Buddhistan.
(3) The currency of Buddhistan shall be called "Brainlo" (symbol: ฿L).

27. Denominations of currency.

(1) Currency notes shall be of the following denominations: ฿L 20, 50, 100, 200, 500, and 1000.
(2) Coins shall be of the following denominations: ฿L 1, 2, 5, 10, 25, and 50.
(3) The Central Board may, with the approval of the Buddhist Government, issue currency notes or coins of any other denomination.

28. Design, form and material of currency notes and coins.

(1) The design, form and material of currency notes and coins shall be such as may be approved by the Central Board after consultation with the Buddhist Government.
(2) All currency notes shall bear the portrait of Lord Buddha and the Dharmachakra symbol.
(3) Coins shall bear the national emblem of Buddhistan and the value in Brainlo.

29. Digital Brainlo (Central Bank Digital Currency).

(1) The Reserve Bank may issue digital currency in the form of Central Bank Digital Currency (CBDC) to be known as "Digital Brainlo".
(2) Digital Brainlo shall be legal tender and equivalent to physical Brainlo currency.
(3) The Reserve Bank shall maintain a blockchain-based ledger for recording all Digital Brainlo transactions.

30. Currency printing and minting.

(1) The Reserve Bank shall establish:

National Security Printing Press for printing currency notes;
National Mint of Buddhistan for minting coins;
National Smart Card Printing Authority for printing debit/credit cards.

(2) All currency printing and minting operations shall be subject to the highest security protocols.

31. Demonetization.

(1) The Reserve Bank may, with the prior approval of the Buddhist Government, declare that any series of currency notes or coins shall cease to be legal tender.
(2) The Reserve Bank shall provide adequate facilities for exchange of demonetized currency.

VI REGULATION OF BANKS

36. Regulatory authority over banks.

The Reserve Bank shall have the power to regulate and supervise all banking companies, non-banking financial companies, cooperative banks, and any other financial institutions operating in Buddhistan.

37. Classification of banks.

Banks operating in Buddhistan shall be classified into the following categories:

Public Sector Banks (owned by Buddhist Government);
Private Sector Banks;
Cooperative Banks;
Regional Rural Banks;
Digital Banks (licensed under section 63);
Foreign Banks.

38. Capital adequacy requirements.

Every bank shall maintain a minimum capital adequacy ratio as may be specified by the Reserve Bank from time to time, which shall not be less than 9% of the risk-weighted assets.

39. Priority sector lending.

Every bank shall lend not less than 40% of its adjusted net bank credit to the priority sectors as specified by the Reserve Bank, including agriculture, micro and small enterprises, education, and housing.

40. Deposit insurance.

All banks shall participate in the Deposit Insurance Scheme administered by the Reserve Bank, insuring deposits up to ฿L 500,000 per depositor per bank.

VII LICENSING SYSTEM

49. Licensing of banks.

No company or institution shall carry on banking business in Buddhistan without obtaining a license from the Reserve Bank.

50. Types of licenses.

The Reserve Bank may issue the following types of licenses:

BL-01: Full-Service Banking License;
MF-02: Microfinance License;
NB-03: Non-Banking Financial Company License;
FB-04: Foreign Bank License;
PG-05: Payment Gateway License;
DC-06: Digital Currency License;
SB-07: Stock Brokerage License;
IF-08: Insurance Finance License.

51. License application process.

An application for license shall be made in the form specified in the Second Schedule and shall be accompanied by:

Memorandum and Articles of Association;
Details of capital structure;
Business plan for the next five years;
Details of board members and key personnel;
Anti-money laundering policy;
Cyber security framework.

52. License fees and renewal.

(1) Every license shall be subject to payment of such fees as specified in the Fourth Schedule.
(2) Every license shall be renewed annually on payment of renewal fees.
(3) Failure to renew license shall attract penalties as specified in the Fourth Schedule.

VIII FOREIGN EXCHANGE

56. Foreign exchange reserves.

The Reserve Bank shall maintain foreign exchange reserves sufficient to cover at least eight months of imports.

57. Gold reserves.

The Reserve Bank shall maintain gold reserves constituting not less than 10% of the total foreign exchange reserves.

58. Foreign exchange management.

The Reserve Bank shall regulate:

Foreign Direct Investment (FDI);
Foreign Portfolio Investment (FPI);
External commercial borrowings;
Remittances abroad;
Foreign currency accounts.

IX DIGITAL BANKING AND PAYMENT SYSTEMS

63. Digital banks.

The Reserve Bank may license digital banks that operate without physical branches, subject to additional cyber security requirements.

64. Payment systems.

(1) The Reserve Bank shall establish and operate the following payment systems:

BrainloPay Network (BPN) – instant payment system;
Real Time Gross Settlement (RTGS);
National Electronic Funds Transfer (NEFT);
Immediate Payment Service (IMPS).

(2) All payment system operators shall be licensed by the Reserve Bank.

65. Blockchain infrastructure.

The Reserve Bank may establish and maintain a permissioned blockchain network for:

Digital Brainlo transactions;
Asset registry;
Smart contracts for government payments;
Cross-border trade finance.

66. Cyber security requirements.

All banks and payment system operators shall comply with the cyber security framework prescribed by the Reserve Bank, including:

Multi-factor authentication;
Biometric KYC linking;
AI-based fraud detection systems;
Encryption standards (AES-256 minimum).

X GOVERNMENT TREASURY

71. Banker to Government.

The Reserve Bank shall act as the banker to the Buddhist Government - Central and State Governments.

72. Government accounts.

All revenues and expenditures of the Buddhist Government shall be transacted through accounts maintained with the Reserve Bank.

73. Public debt management.

The Reserve Bank shall manage the public debt of the Buddhist Government, including issuance and servicing of government securities.

74. Ways and means advances.

The Reserve Bank may grant ways and means advances to the Buddhist Government- Central and State Governments to meet temporary mismatches in cash flows.

XI OFFICERS AND STAFF OF THE RESERVE BANK

77. Officer classification.

Officers and staff of the Reserve Bank shall be classified into the following categories as specified in the Third Schedule:

Class A: Executive Management – Governor, Deputy Governors, Chief General Managers, Executive Directors;
Class B: Senior Management – Regional Directors, State Chief Managers, Policy Officers;
Class C: Operational Officers – Clerks, Inspectors, Data Entry Operators, Customer Service Officers;
Class D: Support Staff – Security, Maintenance, Drivers, Office Support.

78. Recruitment and training.

(1) The Reserve Bank shall establish the Buddhistan Banking Training Academy (BBTA) for training its officers and staff.
(2) Recruitment to the Reserve Bank shall be through a competitive examination conducted by the Reserve Bank Services Board.

79. Code of conduct.

Every officer and staff of the Reserve Bank shall abide by the Code of Conduct based on Buddhist principles of ethical conduct.

XII AUDIT AND ACCOUNTS

85. Maintenance of accounts.

The Reserve Bank shall maintain proper accounts and other relevant records and prepare an annual balance sheet and profit and loss account.

86. Audit.

(1) The accounts of the Reserve Bank shall be audited annually by auditors appointed by the Buddhist Government.
(2) The Comptroller and Auditor General of Buddhistan may conduct supplementary audits.

87. Annual report.

The Reserve Bank shall submit to the Buddhist Government an annual report on its activities, which shall be laid before the Parliament.

XIII PENALTIES AND OFFENCES

91. Penalty for unlicensed banking.

Any person carrying on banking business without a license shall be punishable with imprisonment for a term which may extend to ten years and with fine which may extend to ฿L 10,000,000.

92. Penalty for counterfeiting currency.

Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any currency note or coin issued by the Reserve Bank, shall be punishable with imprisonment for life and with fine.

93. Penalty for fraud.

Any officer of the Reserve Bank or any bank who commits fraud shall be liable to:

Immediate dismissal from service;
Imprisonment up to seven years;
Fine equivalent to five times the amount involved in the fraud.

94. Compoundable offences.

The Reserve Bank may compound any offence under this Act for such sum as it deems fit, not exceeding the maximum fine prescribed.

XIV MISCELLANEOUS

99. Power to make regulations.

The Reserve Bank may, with the prior approval of the Buddhist Government, make regulations consistent with this Act to carry out the purposes of this Act.

100. Power to remove difficulties.

If any difficulty arises in giving effect to the provisions of this Act, the Buddhist Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty.

101. Protection of action taken in good faith.

No suit, prosecution or other legal proceeding shall lie against the Buddhist Government, the Reserve Bank, or any officer of the Reserve Bank for anything which is in good faith done or intended to be done under this Act.

102. Buddhist ethics in banking.

All banks and financial institutions in Buddhistan shall conduct their operations in accordance with the following Buddhist principles:

Right Livelihood – no financing of harmful activities;
Compassion – fair treatment of borrowers in distress;
Moderation – reasonable interest rates and profits;
Mindfulness – careful risk assessment;
Interdependence – consideration of social and environmental impact.

FIRST SCHEDULE

[See sections 2 and 37]

LIST OF SCHEDULED BANKS

PUBLIC SECTOR BANKS

Buddhistan National Bank (BNB)
Buddhistan People's Bank (BPB)
Buddhistan Agriculture Bank (BAB)
Buddhistan Industrial Development Bank (BIDB)
Buddhistan Women Welfare Bank (BWWB)
Buddhistan Infrastructure Finance Bank (BIFB)

PRIVATE SECTOR BANKS

Lotus Finance Bank
Dharma Credit Bank
Buddha Trust Bank
Sangha Capital Bank
Nirvana International Bank
Metta Cooperative Bank

SECOND SCHEDULE

[See section 51]

FORMS OF LICENSES

FORM BL-01 (Banking License)

LICENSE NO: RBB/BL-01/2014/001
DATE OF ISSUE: ________________
VALID UP TO: ________________

This license is granted to ________________ (Name of Bank) to carry on banking business in Buddhistan under the Reserve Bank of Buddhistan Act, 2014, subject to the conditions specified herein.

FORM DC-06 (Digital Currency License)

LICENSE NO: RBB/DC-06/2014/001
DATE OF ISSUE: ________________
VALID UP TO: ________________

This license authorizes ________________ (Name of Entity) to operate digital currency services in Buddhistan under the Digital Banking Regulations, 2014.

THIRD SCHEDULE

[See section 77]

OFFICER CLASSIFICATION AND PAY SCALES

Class	Grade	Positions	Pay Scale (฿L per month)
Class A	A1	Governor, Deputy Governors	400,000 - 500,000
	A2	Chief General Managers	250,000 - 350,000
	A3	Executive Directors	200,000 - 280,000
Class B	B1	Regional Directors	150,000 - 200,000
	B2	State Chief Managers	120,000 - 160,000
	B3	Policy Officers	90,000 - 130,000

Ven. Dr. Dhammika Thero

President of Buddhistan

Mr. Ananda Wickramasinghe

Finance Minister

Dr. Sudatta Khemaka

Governor, RBB

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