KATHMANDU: For months, all eyes were on Nepal’s central bank, Nepal Rastra Bank (NRB), amid a tense political tug-of-war between the ruling Nepali Congress and CPN-UML parties over appointing the new governor.

This months-long standoff finally ended on Tuesday, when economist Biswo Nath Poudel, a Congress nominee, was appointed as the new governor of the NRB.

The appointment took nearly 44 days — far exceeding the legal provision requiring the governor to be named at least one month before the post becomes vacant. The delay was due to intense political wrangling between the two major parties, each pushing to have a close associate appointed, causing a leadership vacuum since April 25.

The governor’s selection committee had recommended three candidates: Poudel, acting governor Neelam Dhungana Timsina, and former government secretary Dinesh Bhattarai. Timsina has served as acting governor following the retirement of former governor Maha Prasad Adhikari on April 4. The committee itself was led by the Finance Minister and included former NRB governor Adhikari and economist Poshraj Pandey.

This prolonged political deadlock raised concerns about governance and created uncertainty about autonomy at the central bank. Critics condemned the government for failing to fulfill its constitutional responsibility in a timely manner, which risked destabilizing the fragile coalition government for strong institutions in political purpose.

The challenges awaiting the new governor are daunting. Nepal’s economy is sluggish, with rising non-performing loans worsening the financial health of banks and financial institutions. Cooperatives and microfinance sectors continue to face significant difficulties. Market demand remains weak, private sector morale is low, and many industries operate at less than half capacity. Both domestic and foreign investments have failed to meet expectations. Addressing these issues will require strong leadership and effective policy implementation.

Adding to the pressure, Nepal remains on the Financial Action Task Force’s (FATF) “grey list” due to its failure to meet minimum standards for controlling financial crimes. The government has been given a two-year deadline to implement an action plan aimed at improving compliance. However, skepticism persists about whether Nepal can meet this timeline, given political pressure and lack of cohesive commitment. Restoring confidence among the private sector to keep the economy moving will be key to recovery.

Despite these essential functions, political influence continues to loom over the NRB. The recent appointment of Poudel, a defeated election candidate from Chitwan, has raised questions about the central bank’s independence. Political shadows now linger over the institution, making it critical for the governor to assert the bank’s autonomy and uphold its role as a powerful and independent regulator.

As Nepal’s central bank navigates turbulent times over protect its autonomy and financial crisis, all eyes remain on newly appointmet Governor Biswo Nath Poudel and his ability to steer the institution toward stability, reform, and economic growth.

As Nepal’s central bank, Nepal Rastra Bank (NRB) holds immense financial and regulatory power, guiding the nation’s economy through its most turbulent times. Yet, its independence has been tested, most recently during a political standoff over the governor’s appointment. Economist Biswo Nath Poudel now leads the institution, facing challenges such as economic sluggishness, rising bad loans, and Nepal’s inclusion on the FATF’s ‘grey list.’

In a politically charged environment, the NRB remains a vital, independent force shaping Nepal’s financial future. Here’s you need to know everything about the Nepal Rastra Bank (NRB) and what you need to know about this powerful institution:

What is Nepal Rastra Bank (NRB), and why was it established?

Nepal Rastra Bank (NRB), the central bank of Nepal, was established on April 26, 1956 (Baisakh 14, 2013 B.S.) under the Nepal Rastra Bank Act of 1955.

Its primary role was to assume central banking responsibilities and foster the development of Nepal’s nascent financial sector. Over time, the Bank has evolved to become the key institution managing the country’s monetary, regulatory, and supervisory framework, ensuring a stable and efficient financial ecosystem.

The initial establishment of NRB marked a pivotal moment in Nepal’s financial history, as it was tasked with laying the groundwork for a structured financial system. By 2002, the dynamic changes in Nepal’s economy necessitated a revision of the Bank’s guiding principles. The new Nepal Rastra Bank Act, 2058 (2002), redefined its objectives and functions to align with the changing financial landscape.

NRB’s primary objectives include formulating monetary and foreign exchange policies to maintain price stability and a favorable balance of payments, ensuring financial sector stability, and fostering public confidence in banking and financial systems. Another critical role is to develop secure, efficient, and healthy payment systems that are vital for economic transactions.

As Nepal’s central bank, NRB oversees all financial institutions, including commercial banks, development banks, finance companies, and microfinance institutions. Its regulatory oversight extends to implementing guidelines that promote sustainability, efficient risk management, and inclusivity in the financial sector. Furthermore, NRB plays an advisory role to the government on economic matters and is a major stakeholder in the Nepal Stock Exchange.

With its central office in Baluwatar, Kathmandu, and provincial offices in Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj, Surkhet, and Dhangadhi, NRB ensures its presence across the country.

In its international collaborations, NRB partners with organizations like the International Finance Corporation (IFC) to implement sustainable finance policies and support green investments. Through these efforts, NRB not only strengthens Nepal’s financial system but also contributes to broader economic stability and sustainable development.

What are the key functions and objectives of Nepal Rastra Bank (NRB)?

Nepal Rastra Bank (NRB), established in 1956, is Nepal’s central bank and monetary authority, playing a pivotal role in maintaining economic stability and fostering development. Its core functions include formulating and implementing monetary and foreign exchange policies to stabilize inflation, ensure market stability, and support sustainable economic growth.

Since 1960, NRB has maintained a fixed exchange rate with the Indian rupee while managing the country’s foreign exchange reserves to safeguard external sector stability.

NRB is responsible for issuing and regulating Nepalese currency, ensuring an adequate supply of high-quality banknotes and coins through initiatives like the Clean Note Policy, and combating counterfeit currency. It also manages public debt by issuing government securities such as Treasury Bills and bonds to finance government borrowing.

As the primary regulator of Nepal’s banking and financial institutions—including commercial banks, development banks, finance companies, and microfinance institutions—NRB licenses, supervises, and enforces compliance with international standards such as Basel II and III. Through its Financial Stability Oversight Committee and Financial Stability Unit, the bank monitors systemic risks, conducts stress tests, and publishes regular reports to uphold financial system resilience.

NRB also develops and modernizes payment and banking infrastructure to facilitate efficient financial transactions and promote financial inclusion, especially in underserved regions. By digitizing payments and enhancing cybersecurity, NRB aims to create a more accessible and secure financial ecosystem.

In its advisory role, NRB provides critical economic insights to the government on monetary and fiscal policy, influencing decisions that shape Nepal’s economic trajectory. Through these multifaceted responsibilities, NRB ensures Nepal’s financial system remains stable, inclusive, and aligned with global best practices, enabling the country to effectively address economic challenges and opportunities.

How does NRB manage foreign exchange and public debt?

Foreign exchange management is a core function of Nepal Rastra Bank. The bank maintains Nepal’s foreign exchange reserves and ensures their efficient use to stabilize the external sector. Since 1960, Nepal has maintained a fixed exchange rate system with the Indian currency, providing stability in bilateral trade and economic relations.

NRB also oversees foreign exchange transactions and licenses remittance companies, ensuring smooth currency flows. Public debt management is another critical area where NRB plays a significant role.

The bank issues various government securities, such as Treasury Bills, Development Bonds, and Citizen Savings Bonds, to finance the government’s fiscal needs. NRB also manages the issuance, distribution, and repayment of these securities, ensuring efficient liquidity management in the financial market.

What is the role of NRB in ensuring financial stability?

Nepal Rastra Bank is tasked with maintaining financial stability in Nepal’s banking and financial sectors. It regulates all licensed financial institutions, including commercial banks, development banks, finance companies, and microfinance institutions.

NRB sets prudential guidelines to ensure that these institutions remain solvent and operate transparently. The bank also monitors financial health through regular inspections and stress tests to anticipate and mitigate potential risks.

To strengthen financial stability, NRB has established the Financial Stability Oversight Committee (FSOC), which monitors systemic risks and formulates strategies to address them. Additionally, the bank publishes biannual Financial Stability Reports to provide insights into Nepal’s financial sector and its resilience to shocks. These measures reflect NRB’s commitment to maintaining a stable and reliable financial environment.

What is the NRB Board, and who are its directors?

At the apex of Nepal Rastra Bank’s (NRB) governance is the Board of Directors (BOD), which is responsible for formulating major policies and overseeing the central bank’s overall strategy.

The Board consists of seven members, including four ex-officio members and three non-executive directors, appointed as per the Nepal Rastra Bank Act, 2002.

The four ex-officio members include the Governor, who serves as the Chairperson of the Board; the Secretary of the Ministry of Finance; and two Deputy Governors. These executives are appointed by the Government of Nepal’s Council of Ministers for a five-year term and serve full-time at the central bank.

The three non-executive directors are also appointed by the Government of Nepal for a five-year term. These directors are selected from among distinguished individuals in the fields of economics, monetary policy, banking, finance, and commercial law.

Currently, the Board is chaired by Governor Biswo Poudel, with other members including Ghanshyam Upadhyaya, Secretary of the Ministry of Finance, Deputy Governors Dr. Neelam Dhungana Timsina and Bam Bahadur Mishra, and non-executive directors Chinta Mani Siwakoti, Dr. Shankar Prasad Acharya, and Dr. Ravindra Prasad Pandey.

The Board meets regularly to oversee NRB’s overall strategy, ensuring that its policies align with the nation’s economic goals and the central bank’s mandate. This governance structure enables the Board to effectively balance operational oversight with strategic direction.

What is the Organizational Structure of Nepal Rastra Bank?
Nepal Rastra Bank operates under a structured organizational framework designed to fulfill its central banking functions efficiently.

Board of Directors: The apex body responsible for policy formulation and oversight. It comprises the Governor (Chairperson), two Deputy Governors, the Secretary of the Ministry of Finance, and three other members appointed by the Government of Nepal.

Governor: The Chief Executive Officer of NRB, responsible for the overall management and execution of the bank’s policies and programs.

Deputy Governors: Assist the Governor in managing the bank’s operations and may oversee specific departments or functions.

Departments and Offices: NRB has various departments, each handling specific functions such as monetary policy, foreign exchange management, banking supervision, financial stability, and payment systems.

Provincial Offices: To decentralize its operations and enhance accessibility, NRB has established provincial offices in Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj, Surkhet, and Dhangadhi.

The bank’s operations are organized into four major groups: the Monetary and Foreign Exchange Policy Group, the Regulation and Supervision Group, the Banking Management Group, and the Support Service Group. These groups, each led by specialized departments, ensure that NRB fulfills its multifaceted mandate effectively.

The Monetary and Foreign Exchange Policy Group focuses on maintaining monetary stability and managing foreign exchange reserves. This group handles foreign exchange operations, conducts economic research, and oversees the country’s money supply through key departments like the Foreign Exchange Management Department and the Monetary Management Department.

The Regulation and Supervision Group is tasked with ensuring the health of Nepal’s banking and financial systems. By regulating banks, microfinance institutions, and non-bank financial entities, this group plays a critical role in maintaining public trust in the financial sector.

Departments under this group include the Banks and Financial Institutions Regulation Department, the Microfinance Institutions Supervision Department, and the Non-Bank Financial Institutions Supervision Department.

The Banking Management Group oversees NRB’s direct banking operations and its provincial offices, which serve as the bank’s regional hubs in cities like Biratnagar, Janakpur, Birgunj, and Pokhara. This group also supervises payment systems and financial institutions to ensure efficient service delivery and adherence to regulations.

Supporting the bank’s internal operations is the Support Service Group, which handles human resources, financial management, IT infrastructure, and risk management. This group ensures that the bank’s internal processes are robust and capable of supporting its external responsibilities.

In addition to these major groups, several independent units report directly to the Governor. These include the Internal Audit Department, which ensures financial transparency, the Financial Intelligence Unit, which combats money laundering, and the Legal Division, which addresses legal and compliance matters.

This organizational framework allows Nepal Rastra Bank to address both its immediate and long-term priorities, from maintaining economic stability to fostering innovation in financial systems. By dividing responsibilities across specialized groups and departments, the bank operates with a high degree of efficiency and accountability, ensuring it can meet the challenges of a dynamic financial landscape.

How is Nepal Rastra Bank addressing the liquidity crunch in the banking sector in 2025?
In 2025, Nepal’s banking sector has been facing a persistent liquidity crunch due to sluggish deposit growth, high credit expansion, and declining remittance inflows. Nepal Rastra Bank (NRB) has taken several steps to ease the pressure on financial institutions.

It has injected liquidity through repo auctions, standing liquidity facilities (SLF), and open market operations (OMO). NRB has also adjusted the Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR) to free up funds for lending. In its latest Monetary Policy review, NRB emphasized a cautious easing of liquidity to avoid inflationary risks while still supporting credit demand in key sectors such as agriculture, SMEs, and tourism.

Furthermore, NRB is encouraging better asset-liability management by banks and improving interbank market efficiency. It has also emphasized the need to curb excessive lending to unproductive sectors, ensuring that credit is channeled to areas that contribute to economic growth.

Governor Biswo Poudel has prioritized stability and discipline in the financial system, signaling that while short-term liquidity support will continue, long-term reforms in credit culture and financial governance are essential.

What steps is Nepal Rastra Bank taking to strengthen cybersecurity in the banking sector?

As digital transactions surge in Nepal, cybersecurity has become a critical concern for Nepal Rastra Bank. In 2025, NRB has intensified its regulatory oversight on cyber risk management among banks and financial institutions.

It has issued a revised Cybersecurity Framework mandating banks to establish Security Operations Centers (SOC), perform periodic vulnerability assessments, and comply with international standards such as ISO/IEC 27001. The central bank has also made it compulsory for all licensed entities to report cyber incidents within 24 hours and adopt multi-factor authentication (MFA) and end-to-end encryption in digital banking platforms.

NRB’s Information Technology Guidelines now require financial institutions to allocate dedicated budgets for cybersecurity and conduct employee training on cyber hygiene. Moreover, NRB is collaborating with national agencies and international partners to enhance threat intelligence sharing and incident response capabilities.

Through audits, simulations, and compliance monitoring, NRB is ensuring that Nepal’s financial system remains resilient against rising cyber threats. These efforts are especially critical as the country moves toward a more cashless economy and expands its digital financial footprint.

How does Nepal Rastra Bank support economic stability during periods of high inflation?

Nepal Rastra Bank (NRB) plays a vital role in maintaining economic stability during periods of high inflation through the implementation of prudent monetary policy. When inflation surges often driven by external shocks, supply disruptions, or fiscal imbalances NRB can respond by tightening monetary conditions.

This includes raising the policy rate, such as the repo rate or bank rate, to reduce excess liquidity in the financial system. NRB also uses tools like open market operations (OMO) to control money supply and ensure price stability.

In addition, NRB issues inflation forecasts, macro-financial assessments, and regular updates through its Current Macro-Economic and Financial Situation reports to guide market expectations.

It also ensures close supervision of banks to prevent credit bubbles that may exacerbate inflation. By maintaining price stability, NRB helps protect the real income of households, particularly low-income groups most affected by rising costs.

Coordination with the Ministry of Finance is equally critical, especially in aligning fiscal discipline with monetary tightening to effectively control inflation and maintain macroeconomic balance.

What is the role of Nepal Rastra Bank in promoting digital payments and financial inclusion in Nepal?

Nepal Rastra Bank has taken a leading role in promoting digital payments and financial inclusion across the country, particularly in underserved rural areas.

It has introduced and supported policies that foster the growth of digital financial services, such as mobile banking, QR code payments, and digital wallets. NRB’s Payment Systems Department regulates and facilitates secure electronic transactions through frameworks like the Nepal Payment and Settlement System (NPSS) and real-time systems like RTGS and IPS.

The central bank has licensed various Payment Service Providers (PSPs) and Payment System Operators (PSOs) to expand digital infrastructure.

To enhance financial inclusion, NRB has mandated banks and microfinance institutions to expand branchless banking services and open low-cost savings accounts. It has also supported concessional lending programs targeting small entrepreneurs, women, and farmers. Initiatives like the e-KYC system and financial literacy programs aim to make digital banking both accessible and secure. Furthermore, NRB publishes the Concessional Loan Report and Database on Nepalese Economy to track progress in these areas.

Through these measures, the central bank is actively working toward a more inclusive and digitally empowered financial ecosystem in Nepal.

How is Nepal Rastra Bank regulating the growing influence of cooperatives in Nepal’s financial system?

With the rapid expansion of cooperatives in Nepal’s financial sector, concerns have grown over weak regulation, mismanagement, and risks to depositors.

Although cooperatives fall under the purview of the Ministry of Land Management, Cooperatives and Poverty Alleviation, Nepal Rastra Bank (NRB) has increasingly emphasized the need for stronger regulatory coordination. NRB has recommended a unified regulatory framework and continues to publish reports highlighting systemic risks posed by large savings and credit cooperatives operating like banks without adequate oversight.

In 2025, NRB has pushed for a regulatory overhaul, advocating for the creation of an independent Cooperative Regulatory Authority to standardize financial reporting, deposit protection, and lending practices. Governor Biswo Poudel has also highlighted the risks of interconnected lending between banks and cooperatives, urging commercial banks to improve due diligence when engaging with such entities.

While NRB does not directly regulate cooperatives, it continues to work closely with other government agencies to mitigate shadow banking risks and protect financial stability.

What role does Nepal Rastra Bank play in managing remittance flows and ensuring their productive use?

Remittances are a lifeline for Nepal’s economy, contributing over 20% to the national GDP. Nepal Rastra Bank plays a central role in managing these inflows through official channels.

It licenses money transfer operators and banks to handle remittances and monitors them through its Foreign Exchange Management Department. NRB regularly publishes data on remittance trends in its Current Macro-Economic and Financial Situation report and the Database on Nepalese Economy.

To encourage the use of formal channels, NRB offers regulatory incentives, such as reduced reserve requirements for banks collecting high remittance volumes and streamlined approval for remittance-related digital platforms. Additionally, NRB has launched public awareness campaigns on the risks of informal (hundi) channels and has collaborated with international partners to strengthen cross-border transfer systems.

More recently, NRB has focused on promoting the productive use of remittances by encouraging recipients to invest in savings, insurance, and entrepreneurial ventures. It is also working to integrate returnee migrants into the formal economy through concessional loan schemes and financial literacy programs. These efforts aim to shift remittance use from mere consumption toward long-term economic development.

What are the key responsibilities of the Monetary and Foreign Exchange Policy Group at Nepal Rastra Bank?
The Monetary and Foreign Exchange Policy Group consists of three departments. The Research Department monitors both domestic and international macroeconomic and financial conditions.

It collects, analyzes, and disseminates various important statistics such as balance of payments, monetary data, and price indicators. This department also conducts special studies that assist in formulating economic policies and macroeconomic forecasting for the government and the bank.

It prepares several key reports including the Current Macroeconomic Situation, the Quarterly Economic Bulletin, and the NRB Economic Review, which is a peer-reviewed journal published twice a year.

The Foreign Exchange Management Department handles foreign exchange transactions and the management of foreign reserves. It decides on interventions to balance the demand and supply of foreign currency in the market and licenses remittance and currency exchange companies while supervising their operations.

It also facilitates transactions related to the Asian Clearing Union (ACU). The Public Debt Management Department manages all aspects of domestic public debt for the government, including preparing the debt issuance calendar, distributing debt instruments, and maintaining accounts as the registrar. It also implements open market operations to manage liquidity in the money market.

What functions does the Banking Operation Group perform within NRB?
The Banking Operation Group includes the Banking Office and the Currency Management Department, along with NRB offices located outside the Kathmandu Valley.

The Banking Office manages government transactions through the Treasury Single Account, acting as a clearinghouse for payments and settlements, including foreign exchange transactions. It also oversees currency chests located at NRB offices and commercial banks and manages the Money Museum.

The Currency Management Department is responsible for designing, issuing, distributing, and destroying currency notes and coins throughout the country. It also manages currency chests in NRB offices and commercial bank branches.

There are seven NRB regional offices outside Kathmandu located in Biratnagar, Janakpur, Birgunj, Pokhara, Siddarthanagar, Nepalgunj, and Dhangadhi. These offices coordinate currency circulation, manage government transactions, and monitor local economic activities, producing economic activity reports at district levels.

What is the role of the Regulation and Supervision Group?
The Regulation and Supervision Group oversees the regulation and supervision of banks and financial institutions licensed under different categories (A, B, C, and D classes).

The Banks and Financial Institutions Regulation Department is responsible for policy and regulatory matters related to these institutions and monitors domestic financial stability, producing the Financial Stability Report twice a year.

The Bank Supervision Department inspects and supervises “A” class commercial banks, implements international best practices such as stress testing and risk-based supervision, and facilitates the transition to Basel III standards.

The Development Bank, Finance Company, and Microfinance Supervision Departments perform similar supervisory functions for their respective financial institutions. Additionally, the Microfinance Department promotes financial literacy and microcredit, especially in underserved areas, and manages various related projects.

What support services does NRB provide internally?
The Support Services Group comprises departments that handle NRB’s internal management and support functions. The Corporate Planning Department is responsible for formulating and monitoring the bank’s strategic plans, budget formulation, and risk analysis.

The Human Resources Management Department handles recruitment, training, staff placement, promotions, and welfare. The Financial Management Department manages payments, expenditures, and staff pension funds.

The General Services Department takes care of procurement, construction, property maintenance, and staff welfare activities such as clinic and cafeteria services. The Bankers’ Training Centre provides training programs for NRB employees and external stakeholders and coordinates international workshops.

The Information Technology Department manages the bank’s IT infrastructure, software, and technology advice. Lastly, the Internal Audit Department ensures compliance with rules and regulations across NRB departments and supports the Audit Committee.

Which offices report directly to the Governor of NRB?
The Office of the Governor includes the personal secretariat of the Governor and Deputy Governors, as well as the secretariat for the Board of Directors.

It also houses the Public Relations and International Relations divisions. This office regularly publishes Mirmire, a bi-monthly staff journal, and Nepal Rastra Bank News.

The Legal Division, also under the Governor, provides legal advice to NRB, represents it in courts, and assists in drafting and amending relevant laws and regulations. The Financial Information Unit coordinates financial transactions reporting to the government and serves as the secretariat for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) activities.

How does NRB formulate and implement monetary policy?
The Research Department drafts the annual monetary policy and mid-term reviews, which undergo discussion by the Management Committee and the Board of Directors before being publicly announced.

The policy aims to maintain price stability, financial sector stability, and promote sustainable economic growth. Instruments used include bank rates, refinance rates, cash reserve ratios, statutory liquidity requirements, standing liquidity facilities, and open market operations through secondary markets.

Direct measures like credit ceilings and moral suasion are also employed. The intermediate targets include monetary aggregates such as broad money and credit aggregates, while the operating target is excess liquidity in banking institutions.

The exchange rate pegged to the Indian rupee remains a nominal anchor. Controlling inflation, especially demand-driven inflation, and managing volatile remittance inflows and exchange rate fluctuations are key focuses of the monetary policy.

How does Nepal Rastra Bank collaborate with the International Finance Corporation (IFC) and other international institutions?

The collaboration between Nepal Rastra Bank (NRB) and the International Finance Corporation (IFC), a division of the World Bank Group, underscores a shared commitment to fostering sustainable financial practices in Nepal.

This partnership focuses on developing environmental and social risk management frameworks, enhancing investment opportunities, and promoting sustainable development through financial reforms.

The Nepal Rastra Bank (NRB) collaborates with the International Monetary Fund (IMF), World Bank, Asian Development Bank (ADB), and Asian Clearing Union (ACU). It is also a member of SAARCFINANCE, the South East Asian Central Banks (SEACEN) Research and Training Centre, the South East Asian Nations’ Central Banks Association (SEANZA), and the Bank for International Settlements (BIS).

One key area of this collaboration is the establishment of protocols to manage environmental and social risks. By implementing these frameworks, NRB supports financial institutions in Nepal to integrate sustainability into their operations. This approach not only mitigates risks but also encourages investment in environmentally friendly and socially responsible businesses.

Workshops and discussions facilitated by IFC in Kathmandu have played a pivotal role in enhancing risk management capabilities within Nepal’s financial sector. These initiatives bring together government officials, global organizations, and financial institutions to exchange knowledge and foster best practices.

Through such collaborations, NRB aims to align Nepal’s financial systems with global standards in sustainability. As part of the Sustainable Banking Network (SBN), NRB seeks to leverage green investments and standardize sustainable finance policies.

This involves encouraging financial institutions to conduct thorough risk assessments, emphasizing environmental and social considerations. NRB’s Deputy Governor has highlighted the importance of creating robust frameworks to manage risks and support green businesses.

For IFC, Nepal remains a critical focus area, particularly in sectors like sustainable energy, financial inclusion, tourism infrastructure development, and job creation. As of June 30, 2016, IFC’s investment portfolio in Nepal exceeded $50 million, reflecting its dedication to private sector development.

This collaboration showcases how NRB and IFC work together to create a resilient and inclusive financial ecosystem, ensuring long-term economic and environmental sustainability for Nepal.

What role can Nepal Rastra Bank and its newly appointed Governor, Biswo Poudel, play in helping Nepal exit the FATF greylist following its second placement in February 2025?

Nepal Rastra Bank (NRB) plays a crucial role in addressing the deficiencies that led to Nepal’s re-inclusion in the Financial Action Task Force (FATF) greylist in February 2025.

As the country’s central bank and financial regulatory authority, NRB is responsible for overseeing banking compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. To facilitate Nepal’s removal from the greylist, NRB must intensify its monitoring of banks and financial institutions to ensure full adherence to Know Your Customer (KYC) norms, suspicious transaction reporting, and risk-based supervision.

One of NRB’s immediate priorities should be to strengthen its cooperation with the Financial Information Unit (FIU) and other national agencies to improve inter-agency coordination on AML/CFT issues. It must also push for reforms to close regulatory loopholes in sectors like remittances, digital payments, and cooperatives, which are often exploited for illicit financial flows. Ensuring timely reporting and international cooperation, as recommended by FATF, is essential.

Governor Biswo Poudel, appointed on May 20, 20025, can play a pivotal role by leveraging his policy experience and leadership to restore regulatory credibility. His task includes expediting reforms, reinforcing institutional capacity, engaging with global partners, and ensuring transparent enforcement to demonstrate Nepal’s commitment to global financial standards.

What are the major publications of Nepal Rastra Bank (NRB)?

Nepal Rastra Bank (NRB), the central bank of Nepal, publishes a diverse array of reports and bulletins to provide accurate and timely information on the country’s economic and financial landscape.

These are produced by various departments, notably the Economic Research Department and the Banks & Financial Institutions Regulation Department. Key publications include the Annual Reports, Economic Review, Economic Bulletin & Indicators, NRB Working Papers, Study Reports, and Economic Activities Study Reports, which analyze macroeconomic trends, research findings, and policy outcomes.

Regular updates like the Current Macro-Economic and Financial Situation, Monthly Statistics, and the Financial Corporations Survey (FCS) ensure public access to real-time data.

NRB also releases the Financial Stability Report, Banking and Financial Statistics, and Quarterly Financial Highlights to monitor sectoral health. Historical data is preserved through the Interest Rate Archives, while the Concessional Loan reports detail priority sector lending.

Tools like e-GDDS (electronic General Data Dissemination System) and the Database on Nepalese Economy support data accessibility. Additional publications include Special Publications, Golden Jubilee Publications, Arthabodh Annual Publication, Know Your Bank Note, and regular Notices. Finally, the Central Bank Survey and Liquidity Position provides insights into monetary operations and liquidity trends in the financial system.

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