Nepal Rastra Bank : All About Nepal Rastra Bank Act 2058
Nepal Rastra Bank : All about Nepal Rastra Bank Act 2058
Nepal Rastra Bank is a central Bank of Nepal. It has authority to all about the banking sector. Nepal Rastra Bank Forex or Nepal Rastra Bank Exchange Rate service are provided by the NRB. Regulation of Bank are not only the function of Nepal Rastra Bank. NRb is the short form of Nepal Rastra Bank. It is also known as bank of government.
Nepal Rastra Bank Act, 2012 is amended and replaced by Nepal Rastra Bank Act, 2058. This act is formed to provide legal right to the Nepal Rastra Bank to act as the Central Bank of Nepal. There are basically 12 chapters and112 sections, the itself was sanctioned by the King on 2058-10-17.
Building of Nepal Rastra Bank
Nepal Rastra Bank Act, 2058, clarifies the objective, function, responsibility, authority and preference of the bank. It also clarifies the function that that is prohibited to this bank, facility and relationship with the Government of Nepal. In addition, the coordination and relationship with public and international organizations and communication and operation of account are also determined. This act has elucidated about monetary function of tifies the statutory ratio to be maintained by all banks and financial institutions. In addition, penalty, open market operation, loan, re-loan, discount and interest to banks are also explained.
Adequate provisions are made in this act of proper management of foreign currencies. The chapter describes various policies and regulations regarding foreign exchange, for reserves, gold and debentures, international clearing and payment contract.
Regarding regulation, supervision and monitoring of banks, this act has made different provisions. As the central bank of Nepal, Nepal Rastra Bank has to regulate all commercial banks and institutions affiliated to it. They are essential for implementation of monetary policy and credit control. For the faceguard of public wealth deposited into bank, the bank regularly supervises and monitors banks. For the expansion and development of banking within the country, the bank grants authority for establishment of a bank, deposit collection, advance loan etc.
Any action opposing this law is unforgivable. So if any authority breaks the law and regulation, the defaulter is charged and immediate action is taken. If necessary, penalty is given to the party; the defaulter can re-apply for justice to the high court if it feels to be suffered from business and injustice.
This Nepal Rastra Bank act 2058 includes the following chapters:
- Chapter 1 Preliminary: defines language within the act;
- Chapter 2 Establishment of the Bank, Objectives and Functions, and Duties and Powers;
- Chapter 3 Formation and Function of the Board, and Duties and Powers;
- Chapter 4 Financial Provisions;
- Chapter 5 Monetary Functions and Operation of Open Market;
- Chapter 6 Monetary Unit, Banknote, and Coins;
- Chapter 7 Foreign Exchange Policy, Regulation, and Reserve;
- Chapter 8 Relation with the Government of Nepal;
- Chapter 9 Regulation, Inspection, and Supervision of the Banks;
- Chapter 10 Balance Sheet, Auditing, and Report;
- Chapter 11 Offenses, Punishment, and Proceedings; and
- Chapter 12 Miscellaneous: addresses payment, clearing and settlement, collection of data, trust accounts, bylaws, and other matters related to the powers of the Central Bank.
Nepal rastra bank act 2058 in English are here for download. Nepali rastra bank bank act 2058 in Nepali is here for download.
Nepal Rastra Bank Act 2058
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