KATHMANDU: Nepal Rastra Bank (NRB) has launched a ‘Regulatory Sandbox’ guidelines to foster fintech innovation by allowing licensed institutions and startups to test new digital products under direct supervision.

To support this, the NRB will temporarily relax strict regulations like minimum paid-up capital and liquidity ratios, provided companies secure explicit consumer consent and manage risks effectively.

The evaluation and approval process for applicants will be completed within 120 working days.

Simultaneously, the central bank has tightened governance by enforcing strict disclosure rules for bank directors, CEOs, top executives, and large promoter shareholders across all banking sectors.

These individuals are now required to formally self-declare their legal compliance and backgrounds.

Additionally, anyone acquiring or transferring promoter shares exceeding 5% of total paid-up capital or Rs 2.5 million must fully disclose their family details and ultimate beneficial ownership.