Nepal Rastra Bank Act Amendment Bill Seeks to Modernize Central Bank Operations
Summary
The Nepal government is moving to amend the Nepal Rastra Bank Act to modernize central bank operations, including provisions for digital currency issuance, financial institution crisis management, and stricter governance.
Key Points
- The Ministry of Finance is preparing an amendment bill for the Nepal Rastra Bank Act to modernize the central bank's operations.
- The bill introduces digital currency and digital banking concepts, enabling Nepal to issue Central Bank Digital Currency in the future.
- It includes provisions for managing failing banks, such as establishing Bridge Banks, and a 'Clawback' mechanism to prevent banking offenses.
- The bill proposes changes to governance structures, government borrowing limits from the central bank, and strengthens the bank's autonomy and coordination with all government levels.
