KATHMANDU: Nepal Rastra Bank (NRB) Governor Biswo Poudel has stated that the central bank requires certain authorities that can be finalized directly after dialogue at the Ministry of Finance level, without needing to go to higher bodies for approval.

Speaking at a meeting of the Finance Committee under the House of Representatives on Friday, Governor Poudel explained that the central bank is seeking specific powers to ensure financial stability.

“The authority we are seeking is aimed at guaranteeing that money deposited in licensed entities does not sink,” he said. “Otherwise, the financial system cannot function. Therefore, the Rastra Bank needs certain powers where, once the NRB Governor and the Finance Minister come to an agreement, it does not have to go to any higher authority.”

He emphasized that the central bank needs this authority to resolve financial risks and that it has become necessary to raise this issue.

“To resolve crises, the Rastra Bank needs corresponding powers. While some authorities have been expanded under the NRB Act and BAFIA (Banks and Financial Institutions Act), there are still areas where we need to press our case,” he added.

Governor Poudel also shared that Nepal Rastra Bank has drafted and submitted several laws to the Ministry of Finance.

These include laws related to Corporate Social Responsibility (CSR), the Banking Offence and Punishment Act, financial customer protection laws, legislation to replace the Foreign Exchange Regulation Act, amendments to the Payment and Settlement Act, and Foreign Exchange Management Regulations.

Furthermore, he mentioned that the NRB Board of Directors is currently discussing the amendment of various other powers, legislation concerning the restructuring of financial assets, and additional amendments to BAFIA.