Nepal Rastra Bank

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Nepal Rastra Bank
नेपाल राष्ट्र बैंक
नेपाल राष्ट्र बैंकको भवन
नेपाल राष्ट्र बैंकको भवन
Headquarters Baluwatar Kathmandu
Established April 26, 1956
Governor Yubaraj Khatiwada
Central bank of Nepal
Currency Nepali rupee
ISO 4217 Code NPR
Website www.nrb.org.np

The Nepal Rastra Bank (NRB) was established in April 26,1956[1] and is the central bank of Nepal. It supervises the banks and financial institutions (licensed by the Bank) in Nepal and guides monetary policy.[2] Nepal Rastra Bank also oversees foreign exchange rates and the country's foreign exchange reserves and regulates the foreign exchange policy. The bank is one of the principal owners of the Nepal Stock Exchange.

The bank is engaged in the promotion of financial inclusion policy within the nation, and is also a member of the Alliance for Financial Inclusion.[3] It made a Maya Declaration Commitment in 2013 to promote financial literacy, prepare a financial sector development strategy by the end of 2014, and improve mobile money services.[4]

It is also a member of the Asian Clearing Union.

Nepal Rastra Bank was established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding the development of the embryonic domestic financial sector. Since inception, there has been a significant growth in both the number and the activities of the domestic financial institutions.

To reflect this dynamic environment, the functions and objectives of the Bank have been recast by the new NRB Act of 2002, the preamble of which lays down the primary functions of the Bank as:[5]

  • To formulate necessary monetary and foreign exchange policies to maintain the stability in price and consolidate the balance of payments for sustainable development of the economy of Nepal;
  • To develop a secure, healthy and efficient system of payments;
  • To make appropriate supervision of the banking and financial system in order to maintain its stability and foster its healthy development; and
  • To further enhance the public confidence in Nepal's entire banking and financial system.
  • To promote entire banking and financial system of the kingdom of Nepal system.

The Bank is eminently aware that, for the achievement of the above objectives in the present dynamic environment, sustained progress and continued reform of the financial sector is of utmost importance. Continuously aware of this great responsibility, NRB is seriously pursuing various policies, strategies and actions, all of which are conveyed in the annual report on monetary policy.

Vision[edit]

Buildings of the bank in Janakpur

To become "A modern, dynamic, credible and effective Central Bank".[6]

Mission[edit]

To maintain macro-economic stability through sound and effective monetary, foreign exchange and financial sector policies.[7]

Regional offices[edit]

It has seven regional offices, located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj, and Dhangadhi.[8]

NRB Governors over the years[edit]

NRB Governors over the years[9]
No. Name of Governor Term of office
1. Mr. Himalaya Shumsher J.B. Rana April 26, 1956 – February 7, 1961
2. Mr. Laxmi Nath Gautam February 8, 1961 – June 17, 1965
3. Mr. Pradyuma Lal Rajbhandari June 18, 1965 – August 13, 1966
4. Dr. Bhekh Bahadur Thapa August 14, 1966 – July 26, 1967
5. Dr. Yadav Prasad Pant April 24, 1968 – April 28, 1973
6. Mr. Kul Shekhar Sharma April 29, 1973 – December 12, 1978
7. Mr. Kalyana Bikram Adhikary June 13, 1979 – December 8, 1984
8. Mr. Ganesh Bahadur Thapa March 25, 1985 – June 22, 1990
9. Mr. Hari Shankar Tripathi August 10, 1990 – January 17, 1995
10. Mr. Satyendra Pyara Shrestha January 18, 1995 – January 17, 2000
11. Dr. Tilak Bahadur Rawal January 31, 2000 - August 28, 2000, April 9, 2001 - January 28, 2005
12. Mr. Deependra Purush Dhakal August 29, 2000 – April 8, 2001
13. Mr. Bijaya Nath Bhattarai January 18, 2005 –January 15, 2009, July 26, 2009 - January 31, 2010
14. Mr. Deependra Bahadur Kshetry January 16, 2009 – July 26, 2009
15. Dr. Yuba Raj Khatiwada March 19, 2010 - present
  • Krishna Bahadur Manandhar (July 5, 2007 - January 15, 2009)

Acting Governor of Nepal Rastra Bank who signed on note.

Deputy Governors of Nepal Rastra Bank and their Tenure[edit]

Deputy Governors of Nepal Rastra Bank
No. Name of Deputy Governor Period
1. Mr. Dhir Bikram Shah November 1969 - November 1974
2. Mr. Kumar Das Shrestha November 1969 – November 1974
3. Mr. Yudhir Shumsher Thapa December 1974 – September 1981
4. Mr. Ganesh Bahadur Thapa December 1974 – November 1978
5. Mr. Iswari Raj Pandey December 1979 – November 1982
6. Mr. Laba Raj Sharma September 1982 – August 1987
7. Mr. Hari Shankar Tripathi August 1985 – May 1990
8. Mr. Hiranya Lal Bajracharya September 1987 - July 1992
9. Mr. Achyut Prasad Poudyal February 1991 – December 1992
10. Dr. Harihar Dev Pant December 1992 - January 1995
11. Mr. Satyendra Pyara Shrestha December 1992 - January 1995
12. Dr. Puspa Raj Rajkarnikar January 1995 – November 1995
13. Dr. Prafulla Kumar Kafle January 1995 - January 2000
14. Mr. Bharat Krishna Sharma November 1995 – November 2000
15. Mr. Ram Babu Pant February 2000 - February 2005
16. Mr. Bijaya Nath Bhattarai November 2000 - January 2005
17. Mr. Lekh Nath Bhusal February 2005 - November 2005
18. Mr. Krishna Bahadur Manandhar March 2005 - March 2010
19. Mr. Bir Bikram Rayamajhi December 2005 - December 2010
20. Mr. Gopal Prasad Kafle December 2010 - Present
21. Mr. Maha Prasad Adhikari December 2010 - Present

Board of Directors[edit]

As per section 14 of Nepal Rastra Bank Act, 2002, the Board of Nepal Rastra Bank (NRB) comprises of seven members: four ex officio members - the Governor (who is the Chairman), the Secretary, Ministry of Finance, two Deputy Governors, and three other Directors, who are appointed from amongst the persons renowned in the field of Economics, Monetary, Banking, Finance and Commercial Laws.[10]

The Governor, Deputy Governors and other Directors are appointed by Government of Nepal, Council of Ministers for term of five years. Government may, reappoint the retiring Governor for another one term and the retiring other Directors for any term, if it is deemed necessary. The current members of the NRB Board are:[11]

Dr. Yuba Raj Khatiwada Chairman Since: 22 March 2010
Shanta Raj Subedi Member Since: 30 Oct 2012
Gopal Prasad Kaphle Member Since: 26 December 2010
Maha Prasad Adhikari Member Since: 26 December 2010
Dr. Sri Ram Poudyal Member since: 08 April 2012
Dr. Ramhari Aryal Member since: 08 April 2012
Bal Krishna Man Singh Member since: 15 February 2013

References[edit]