NRB launches ‘Regulatory Sandbox’ and tightens rules for bank executives
Summary
Nepal Rastra Bank has introduced a Regulatory Sandbox to promote fintech innovation by allowing supervised product testing and has imposed stricter disclosure requirements on bank executives and large promoters.
Key Points
- Nepal Rastra Bank has launched the ‘Regulatory Sandbox’ guidelines to enable licensed institutions and startups to test new digital products under supervision.
- The NRB will relax certain regulations like minimum paid-up capital and liquidity ratios during the sandbox testing, with consumer consent and risk management.
- The approval process for applicants to the sandbox will be completed within 120 working days.
- NRB has tightened governance rules requiring bank directors, CEOs, top executives, and large promoter shareholders to disclose legal compliance and ownership details.
