Nepal Rastra Bank
Encyclopedia
The Nepal Rastra Bank established in 1956, is the central bank
of Nepal
. It has seven offices, located at Biratnagar, Janakpur, Birgunj, Pokhara
, Siddharthanagar
, Nepalgunj
, and Dhangadhi
.
It supervises the commercial bank
s in Nepal and guides monetary policy. Nepal Rastra Bank also oversees foreign exchange rates and the country's foreign exchange reserves
. The bank is one of the principal owners of the Nepal Stock Exchange
.
It is a member of the Asian Clearing Union
.
Nepal Rastra Bank, the Central Bank of Nepal, 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:
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.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
of Nepal
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...
. It has seven offices, located at Biratnagar, Janakpur, Birgunj, Pokhara
Pokhara
Pokhara Sub-Metropolitan City is the second largest city of Nepal. Pokhara is city of close to 350,000 inhabitants in central Nepal located at 28.25°N, 83.99°E, which is the centre of the country from east to west or from north to south, 198 km west of Kathmandu or 90 km west of Mugling, and...
, Siddharthanagar
Siddharthanagar
This article is on the Nepali town. For the district in Uttar Pradesh, see Siddharthnagar District.Siddharthanagar is a municipality near the Indian border on the Outer Terai plains of Nepal, west of Kathmandu Nepal's capital...
, Nepalgunj
Nepalgunj
Nepalgunj , also spelled Nepalganj, is a municipality in Banke District, Nepal on the Terai plains near the southern border with Bahraich district, Uttar Pradesh state of India. It is 16 km south of Kohalpur and the east-west Mahendra Highway....
, and Dhangadhi
Dhangadhi
Dhangadhi is a city in Far western Nepal bordering India. It is the capital of Kailali District in the province of Seti.Located in the Far Western Region of Nepal on the border of India, the city of Dhangadhi is one of the entry points into the country for people traveling from India.It was...
.
It supervises the commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in Nepal and guides monetary policy. Nepal Rastra Bank also oversees foreign exchange rates and the country's foreign exchange reserves
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
. The bank is one of the principal owners of the Nepal Stock Exchange
Nepal Stock Exchange
The Nepal Stock Exchange Limited popularly called NEPSE is the only Stock Exchange of Nepal. It is located in SinghaDurbar Plaza, Kathmandu Nepal...
.
It is a member of the Asian Clearing Union
Asian Clearing Union
The Asian Clearing Union , with headquarters in Tehran, Iran, was established on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific...
.
Nepal Rastra Bank, the Central Bank of Nepal, 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:
- 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.
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.