Nepal Rastra Bank (NRB) Functions

Title
Nepal Rastra Bank (NRB) Functions
Details

Nepal Rastra Bank (NRB), established under the Nepal Rastra Bank Act, 2058 (2002), is the central bank of Nepal responsible for maintaining macroeconomic and financial sector stability.

Core Functions

  1. Monetary Policy: Formulating and implementing monetary policy to maintain price stability, manage liquidity, and support economic growth. NRB announces this policy annually in the month of Shrawan.
  2. Currency Issuance: Holding sole authority for issuing currency notes and coins in Nepal.
  3. Banking Regulation & Supervision: Licensing and supervising Banks and Financial Institutions (BFIs) under the Banks and Financial Institutions Act (BAFIA), 2073.
  4. Foreign Exchange Management: Managing foreign exchange transactions, regulating reserves, and determining exchange rate policies.
  5. Government Banking: Acting as the banker, financial advisor, and agent to the Government of Nepal.
  6. Payment Systems: Regulating and promoting safe payment and settlement systems, including digital clearing infrastructure like NCHL.
  7. Financial Stability: Implementing macroprudential policies and stress testing to secure public trust in the financial system.
Category
Monetary Policy
Fiscal Year
2082
Key Figure/Rate
7 core central banking functions

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