Parliamentary Legal Reforms 2026

Nepal’s Supreme Court issued an interim order suspending Rule 140(11) and Rule 259 of the House of Representatives Rules, 2026. The bench said the provisions appeared inconsistent with the Constitution and kept them on hold until a final verdict.

President Ramchandra Paudel approved the bill to restore provisions of the Nepal Special Service Act, 2042 BS after it passed both houses of Parliament. The law took effect upon the president’s formal endorsement.

The House of Representatives’ Finance Committee unanimously passed the report on the bill to amend the Nepal Rastra Bank Act, 2058. Committee discussion focused on the selection and responsibilities of the central bank’s leadership and the bill’s expected structural economic impact.

The House of Representatives passed the Nepal Law Commission (First Amendment) Bill, 2026 without opposition. Law Minister Sobita Gautam presented the bill and answered lawmakers’ questions before it was endorsed.

Finance Minister Swarnim Wagle said the government would not interfere in Nepal Rastra Bank’s autonomy and that the Finance Secretary would only coordinate fiscal and monetary policy. Lawmakers were debating the bill to amend the Nepal Rastra Bank Act, 2058, with concerns raised over government control of the central bank.

The National Assembly unanimously passed the bill to revive former provisions of the Nepal Special Service Act, 2042 BS. Lawmakers also debated whether the National Investigation Department should report to the Home Ministry or the Prime Minister’s Office.

Both houses of Federal Parliament were scheduled to meet on Sept. 10, with the House of Representatives set to consider amendment bills on the Citizen Investment Trust, Payment and Settlement, and Employees Provident Fund. The National Assembly was set to hear the National Human Rights Commission annual reports and discuss a bill to continue provisions under the Nepal Special Services Act.

The House of Representatives received the Nepal Law Commission (First Amendment) Bill, 2083 on Sept. 9. Law, Justice and Parliamentary Affairs Minister Sobita Gautam said the amendment is intended to develop the commission into a centre of excellence.

A task force led by Asim Shah submitted a constitutional amendment debate paper to the Prime Minister and Council of Ministers Office after two months of study. The report proposes changes to 245 of Nepal’s 308 constitutional articles, including electoral, judicial and governance reforms.

Nepal’s Federal Parliament scheduled the Child Labour (Prohibition and Regulation) Bill for consideration in the House of Representatives at 1:00 pm. Youth, Labour and Employment Minister Ramji Yadav was set to seek committee referral for clause-by-clause discussion.

Both houses of Nepal’s Federal Parliament met in Kathmandu to advance several bills and refer them to committees for clause-wise discussion. The agenda included the Nepal Law Commission (First Amendment) Bill, the Mediation (Second Amendment) Bill, and the Child Labour (Prohibition and Regulation) Bill.

Law Minister Sobita Gautam defended keeping the National Investigation Department under the Prime Minister, saying the arrangement improves access to sensitive security information and decision-making. She said the amendment bill is intended to reactivate inactive clauses in the Nepal Special Service Act and restore the department’s placement under the PM’s office.

The National Assembly unanimously approved the proposal to revive provisions of the Nepal Special Service Act, 2042 and sent the bill to the Legislation Management Committee for clause-by-clause discussion. Law, Justice and Parliamentary Affairs Minister Sobita Gautam presented the motion on behalf of Prime Minister Balen Shah.

Nine parliamentary committees were scheduled to meet on legislation and governance issues, including a Finance Committee discussion of a bill to amend the Nepal Rastra Bank Act, 2058. Other panels were set to review the Tourism Bill and oversight topics such as foreign assistance audits and public projects.

Both houses of Nepal’s Federal Parliament were scheduled to meet in Kathmandu to take up the Employees Provident Fund Bill, the Child Labour Bill, and a long-term electricity trade agreement between Nepal and India. Ministers were also set to present additional proposals and answer lawmakers’ questions.

The National Assembly unanimously approved the proposal to consider the Bill Relating to Domestic Air Service Liabilities, 2083. The bill would exempt airlines from liability for delays caused by natural or technical reasons.

The House of Representatives met at 1:00 PM to discuss and vote on the Nepal Special Service Bill alongside other major bills. The session also included oral questions to ministers and proposals to introduce additional legislation.

SEBON unveiled a white paper for long-term development of Nepal’s primary capital market under its FY 2083/84 reform agenda. The roadmap proposes legal changes, a Digital IPO Platform, e-KYC, RegTech and SupTech systems, and more market-based price discovery.

Nepal’s Retail Payment Switch processed Rs. 9.3 trillion in real-time transactions in FY 2025/26 and more than Rs. 1.2 trillion in Ashadh 2083, surpassing annual cheque transaction value for the first time. The figure underscores the rapid expansion of interoperable digital payments under Nepal’s payment system reforms.

SEBON formed a seven-member Primary Market Reform Facilitating Task Force to implement regulatory reforms for Nepal’s primary capital market. Its review covers IPO allocation, book-building, digital IPO systems, anchor investors and post-issue monitoring.

Five House committees met separately, including the Women and Social Affairs Committee, which discussed a sub-committee report and a bill to implement the Nepal Special Service Act, 2042. The meetings marked a new committee-stage review of the special service legislation.

Nepal's House of Representatives unanimously sent a bill to amend and repeal certain financial laws to a parliamentary committee for clause-by-clause review. Finance Minister Swarnim Wagle presented the proposal before the vote.

SEBON held talks with Non-Resident Nepali representatives on legal changes to enable their participation in Nepal’s capital market. The government has committed to amending laws to allow NRNs in the secondary securities market.

Finance Minister Dr. Swarnim Wagle visited SEBON and urged stronger regulatory quality and faster capital market development. SEBON said it has prepared a Capital Market Development Blueprint and fiscal year 2083/84 policy and action plan.

Nepali households are rapidly moving investments from gold and land to capital markets, with Demat accounts rising from 1.7 million in 2020 to over 6.9 million in 2025, accompanied by growth in mutual funds despite challenges like financial illiteracy.

Finance Ministry Secretary Dr. Ghanshyam Upadhyay emphasized financial sector governance and reform as key priorities, noting the need to amend the Nepal Rastra Bank Act to strengthen governance and incorporate IT developments.

Nepal’s non-performing loan ratio tripled to 4.62% by mid-2025, with rising unrecoverable loans mainly in fishery, trade, and construction sectors, highlighting increasing financial stress despite economic growth.

Nepal Rastra Bank increased margin lending limits, extended loan relief for government contractors, prolonged working capital deadline enforcement, and eased National ID rules for migrants and children to improve financial inclusion and credit policy.

The Securities Board of Nepal announced reforms to enhance investor protection and market development, including streamlined IPO approvals, improved margin trading, and enhanced measures against securities-related crimes and market manipulation.

Nepal Rastra Bank instructed banks to reduce dormant accounts by mid-2026 through amended directives and improved customer notification practices via phone, SMS, or email.

Nepal's House of Representatives scheduled a meeting at 11 AM to discuss key reports including the Attorney General's Annual Report and the National Service Corps Bill.

Nepal's Parliament sent the Nepal Rastra Bank (Third Amendment) Bill and the Tourism Bill to committees for clause-by-clause discussion, following a unanimous parliamentary decision.

Eighteen MPs proposed amendments to the Nepal Rastra Bank Bill focusing on digital banking recognition, director qualifications, regional banking concepts, and governance improvements.

Nepal's Rastriya Swatantra Party adopted a statute granting party chair Rabi Lamichhane the authority to remove the parliamentary party leader for failure to follow policy directives, centralizing party leadership control.

A bill was introduced to reaffirm the National Investigation Department’s placement under the Prime Minister’s Office, reversing a previous change and reigniting an eight-year political struggle over intelligence agency control.

A bill to revive the Nepal Special Service Act, 2042 was presented to keep the National Investigation Department under the Prime Minister's Office for national security.

Nabil Bank CEO Manoj Gyawali called for legal and practical reforms in Nepal's banking sector, urging revision of loan classification rules and better coordination between monetary policies and government payments to mitigate risk and reduce non-performing loans.

A new Company Act draft proposes tiered minimum capital requirements, centralized corporate social responsibility fund contributions, and stricter beneficial ownership disclosures to modernize business regulation.

The Public Procurement (Second Amendment) Bill 2083 was passed aiming to accelerate development projects, enhance contract quality, and introduce an Infrastructure Court for stalled projects.

Nepal's Parliament passed the Prevention of Money Laundering (Third Amendment) Bill 2083 to help remove Nepal from the international 'Grey List' within two years, emphasizing strict implementation and governance.

Nepal's House of Representatives unanimously approved the Bill to Raise Public Debt, 2083, allowing government borrowing from domestic and international sources to finance long-term development projects.

Nepal's House of Representatives passed the Finance Bill 2083 by majority vote, rejecting most amendment proposals related to tax provisions and the revenue framework.

Four replacement bills for government ordinances were presented in Nepal's House of Representatives concerning public procurement, money laundering prevention, cooperatives, and health sciences laws, intended to supersede prior ordinances.

Nepal's government revived a bill to reform domestic aviation liability and insurance laws, aligning with international standards and enhancing passenger protections including higher compensation limits.

A legal amendment was proposed to apply polygamy liability equally to men, women, and sexual minorities, alongside revisions to marriage age, abortion, and sexual offense laws.

The Ministry of Law proposed amendments to Nepal's National Penal Code addressing child marriage, same-sex marriage recognition, and abortion decriminalization, maintaining marriage age at 20 with exceptions for consensual 18–20 year olds.

Out of eight ordinances issued by Nepal's government in April, four have been accepted by Parliament and are on track to become laws, while four face automatic invalidation for lack of approval within 60 days.