Central bank tightens oversight of digital payments to prevent systemic risks
Summary
Nepal Rastra Bank has introduced a framework to regulate systemically important payment systems to mitigate risks associated with digital payment platforms and ensure financial stability.
Key Points
- Nepal Rastra Bank has issued a framework for Systemically Important Payment Systems (SIPS) to minimize risks in online payment platforms.
- The framework identifies and regulates payment systems handling large-value and time-critical transactions to prevent systemic shocks.
- It mandates strong legal compliance, annual stress tests, effective governance, and timely settlement by payment platforms.
- Payment systems operators must conduct annual self-assessments and share results for transparency, with the framework reviewed biennially.
