Nepal Rastra Bank: – Introducing you to a small country Nepal in the lap of the Himalayas between the two large countries India and China. Nepal is the country of highly diverse and rich geography, and culture. Nepal is divided into three geographical regions and five development regions.
Nepal is believed to be the country of peace and love. The ‘light of Asia’, Gautam Buddha was born in the country who spread the feeling of love and respect among the Nepalese.
Also, it is a mountainous country. The highest peak of the world ‘Mount Everest’ is also located in the country of Nepal which has made our country to be recognized to the whole world although it is a small country. Except for the second highest peak, all the 14 highest peaks of the world is situated in the country.
Turning the pages of the history of Nepal, we can find the sacrifices of the Bir Gorkhalis. Although, the area covered by the country is not much the Nepalese people are living out with peace and harmony The religion of the people also affect the art and architecture of Nepal. Nepal is the only country where there is a wide variation in altitude from the sea level ‘Cachenacal Jhapa’ to the 8848m.
It is the country rich in water resources in Asia. It is still a developing country where most of the population in the rural areas of the country are illiterate but in spite of the fact being illiterate, they put much of the efforts their culture and religion.
The national flag is the representation of the uniqueness of the country. The red color is the symbol of bravery of our national heroes and the blue color is the symbol of peace and harmony against the Nepalese.
Nepal is the multi-lingual and multi-ethnic country. The people from different castes and culture are living together with the feeling of love representing ‘unity in diversity’. Majority of the people is dependent on agriculture. Most of the population of Nepal is Hindu and a small percentage is Buddhists, Muslims, and other religious faiths.
Due to political uninstability, the country is not developed much. Despite the illiteracy of the Nepalese people in the rural areas of Nepal they treat the ‘guests as their god’ so the visitors all around from the world get the feeling of warmth and respect .’ Namaste’ is a Sanskrit word used for the greeting with the respect.
All about Nepal Rastra Bank
A central bank is a financial institution that has privileged control over the production and distribution of funds and credit to a nation or group of nations. In modern economies, the central bank is generally responsible for shaping monetary policy and regulating the activities of all member banks and financial institutions.
It is needed to develop the banking sector, issues of notes, exchange foreign currency and perform functions as a government bank. Central banks are not, by nature, market-based, not even anti-competitive.
Although some are nationalized, many central banks are not government agencies and, therefore, are often considered politically independent. Even if a central bank is not legally owned by the government, its privileges are enshrined and protected by law.
The distinguishing characteristic of a central bank, which distinguishes it from other banks, is its legal monopoly status, which allows it to issue banknotes and cash. Private commercial banks can only issue demand deposits, such as deposits with checks.
Although their responsibilities vary greatly from one country to another, the tasks of central banks (and the reason for their existence) are generally divided into three areas. First, central banks control and manipulate the national money supply: they spend currencies and set interest rates on loans and bonds.
In general, central banks raise interest rates to slow growth and avoid inflation. They are lowered to boost growth, industrial activity, and consumer spending. In this way, they control the monetary policy to direct the economy of the country and achieve economic objectives such as full employment.
Second, they regulate member banks through, among other things, capital requirements, reserve requirements (which establish the number of money banks can lend to clients and the amount of cash they need to have in stock) and deposit insurance.
They also provide loans and services to banks and the government of a country and manage foreign exchange reserves. Finally, a central bank also acts as an emergency lender for troubled commercial banks and other institutions, and sometimes even for a government.
For example, when buying sovereign debt, the central bank offers a politically attractive alternative to taxes when a government needs to increase its revenues.
Each sovereign nation has its central bank. Nepal also has its central bank (Nepal Rastra Bank). Today we show in this article an important feature of the NRB. Here they are : –
1. The Nepal Rastra Bank, the Central Bank of Nepal, was established under the 2012 Nepal Rastra Bank Act on 14th Baishakh 2013. as amended by the NRB Act of 2058 ( amended in 2073). The bank is headquartered in Nepal and its main office is in Baluwatar, Kathmandu. The bank’s responsibility is distributed throughout the country. It does not have the motto to earn a profit. It had got one crore of authorized capital at the time of establishment.
2. Nepal Rastra Bank is aware that to achieve the aforementioned objectives in the current dynamic environment, continuous progress and reform of the financial sector are of the utmost importance. The NRA is aware of this great responsibility and is seriously pursuing various policies, policies, and measures, all included in the Annual Policy Review.
3. The vision of the Nepal Rastra Bank is to become “a modern, dynamic, credible and effective Central Bank”. Its mission is to guarantee macroeconomic stability through sound and effective monetary, exchange and financial market policies.
NRB was established to fulfill the demand of currency, to maintain financial interest, to circulate Nepalese currency throughout the kingdom of Nepal, to create stability in the exchange rate of Nepalese currency, to mobilize capital for the promotion of industries and the development of banking system.
4. In Nepal, there are 5 types of the finance company, and NRB grades them in 4 Classes excluding themselves. They are:-________________________________________
I. The Central Bank of Nepal: Nepal Rastra Bank
II. Commercial Banks (Class ‘A’ Banks)
III. Development Banks (Class ‘B’ Banks)
IV. Finance Companies (Class ‘C’ Banks)
V. Micro Credits Development Banks (Class ‘D’ Banks)
I. The Central Bank of Nepal: Nepal Rastra Bank
The Nepal Rastra Bank was founded in 1956 as the central bank of Nepal. It is the regulatory, monetary and supervisory authority of financial institutions and banks. The main objectives of the Bank are to maintain price stability and the balance of payments, manage liquidity and guarantee financial stability, develop a solid payment system and promote financial services. Dr. Chiranjibi Nepal is the current Governor of the NRB. The operations of all banks in Nepal are controlled by Nepal Rastra Bank.
The following list contains the authorized banks of Nepal Rastra Bank in Nepal:
II. Commercial banks.
Commercial banks are class A financial institutions. Nepal Bank Limited (founded in 1937) is the first commercial bank in Nepal. Commercial banks operate all types of banks. The main purpose of commercial banks is to receive deposits and lend to others.
The functions of commercial banks are; Accept deposits; Advance loan, letter of credit, guarantee, bank transfer, electronic banking, invoices, etc. These banks offer banking services in the form of bank branches, bank services without branches, mobile banking, Internet banking, ATMs, debit cards, credit cards, etc. Falgun, 2075) there are currently 28 commercial banks in Nepal.
So far, 3266 commercial bank branches have been established throughout the country.
1) Nepal Bank Ltd. (NBL)
2) Rastriya Banijya Bank Ltd. (RBB)
3) Nabil Bank Ltd. (NABIL)
4) Nepal Investment Bank Ltd. (NIBL)
5) Standard Chartered Bank Nepal Ltd. (SCBNL)
6) Himalayan Bank Ltd. (HBL)
7) Nepal SBI Bank Ltd. (NSBI)
8) Nepal Bangaladesh Bank Ltd. (NBB)
9) Everest Bank Ltd. (EBL)
10) Bank of Kathmandu Lumbini Ltd. (BOK)
11) Nepal Credit and Commerce Bank Ltd. (NCC)
12) NIC Asia Bank Ltd. (NIC)
13) Machhapuchhre Bank Ltd. (MBL)
14) Kumari Bank Ltd. (Kumari)
15) Laxmi Bank Ltd. (Laxmi)
16) Siddhartha Bank Ltd. (SBL)
17) Agriculture Development Bank Ltd. (ADBNL)
18) Global IME Bank Ltd. (Global)
19) Citizens Bank International Ltd. (Citizens)
20) Prime Commercial Bank Ltd. (Prime)
21) Sunrise Bank Ltd. (Sunrise)
22) NMB Bank Ltd. (NMB)
23) Prabhu Bank Ltd. (PRABHU)
24) Janata Bank Nepal Ltd. (Janata)
25) Mega Bank Nepal Ltd. (Mega)
26) Civil Bank Ltd. (Civil)
27) Century Commercial Bank Ltd. (Century)
28) Sanima Bank Ltd. (Sanima)
III. Development Banks
Development banks are type “B” financial institutions. Depending on the geographic coverage and the level of activity, there are three types of development banks: a) 1 to 3 districts, type b) 4 to 10 districts, type c) national type. According to the latest data from the Nepal Rastra Bank, there are currently a total of 33 development banks in Nepal.
So far, 1181 branches of development banks have been established throughout the country.
1) Mahalaxmi Bikas Bank Ltd.
2) Narayani Development Bank Ltd.
3) Sahayogi Bikas Bank Ltd.
4) Karnali Bikash Bank Ltd.
5) Sangrila Development Bank Ltd.
6) Excel Development Bank Ltd.
7) Western Development Bank Ltd.
8) Deva Development Bank Ltd.
9) Miteri Development Bank Ltd.
10) Tinau Bikas Bank Ltd.
11) Muktinath Bikas Bank Ltd.
12) Kankai Bikas Bank Ltd.
13) Bhargab Bikas Bank Ltd.
14) Garima Bikas Bank Ltd.
15) Om Development Bank Ltd.
16) Gandaki Development Bank Ltd.
17) Kabeli Bikas Bank Ltd.
18) Kamana Bikas Bank Ltd.
19) Corporate Development Bank Ltd.
20) Purnima Bikas Bank Ltd.
21) Jyoti Bikas Bank Ltd.
22) Hamro Bikas Bank Ltd.
23) Shine Resunga Development Bank Ltd.
24) Kanchan Development Bank Ltd.
25) Lumbini Bikas Bank Ltd.
26) Mission Development Bank Ltd.
27) Sindhu Bikas Bank Ltd.
28) Sahara Bikas Bank Ltd.
29) Nepal Community Development Bank Ltd.
30) Kailash Bikash Bank Ltd.
31) Salapa Bikash Bank Ltd.
32) Saptakoshi Development Bank Ltd.
33) Green Development Bank Ltd.
IV. Finance Companies
Financial companies are “C” type financial institutions. According to the latest data from NRB, there are currently 24 financial companies in Nepal. So far, 197 branches of financial companies have been established throughout the country. They are;
1) Nepal Finance Ltd.
2) Nepal Share Markets and Finance Ltd.
3) Gurkhas Finance Ltd.
4) Goodwill Finance Ltd.
5) Shree Investment & Finance Co. Ltd.
6) Lalitpur Finance Co. Ltd.
7) United Finance Co. Ltd. United
8) General Finance Ltd.
9) Progressive Finance Co. Ltd.
10) Janaki Finance Co. Ltd.
11) Pokhara Finance Ltd.
12) Central Finance Ltd.
13) Arun Finance Ltd.
14) Multipurpose Finance Co. Ltd
15) Shrijana Finance Ltd.
16) World Merchant Banking & Finance Ltd.
17) Capital Merchant Banking & Finance Co. Ltd.
18) Crystal Finance Ltd.
19) Guheshwori Merchant Banking & Finance Ltd.
20) ICFC Finance Ltd.
21) Kuber Merchant Finance Ltd.
22) Manjushree Financial Institution Ltd.
23) Jebil’s Finance Ltd.
24) Reliance Finance Ltd.
IV. Micro Credits Development Banks
The microcredit development banks are “D” type financial institutions. According to the latest data from Nepal Rastra Bank, there are 82 microcredit development banks in Nepal. So far, 4644 branches of microcredit development banks have been established throughout the country.
1) Nepal Grameen Bikas Bank Ltd.
2) Nirdhan Utthan Bank Ltd.
3) Rural Microfinance Development Centre Ltd.
4) Deprosc Microfinance Development Bank Ltd.
5) Chhimek Microfinance Development Banks Ltd.
6) Swabalamban Laghu Bitta Bikas Banks Ltd.
7) Sana Kisan Bikas Bank Ltd.
8) Nerude Laghu Bitta Bikas Bank Ltd.
9) Naya Nepal Laghu Bitta Bikas Bank Ltd.
10) Summit Microfinance Development Bank Ltd.
11) Sworojagar Laghu Bitta Bikas Bank Ltd
12) First Microfinance Development Bank Ltd
13) Nagbeli Microfinance Development Bank Ltd
14) Kalika Microcredit Development Bank Ltd.
15) Mirmire Microfinance Development Bank Ltd.
16) Janautthan Samudayik Microfinance Dev. Bank Ltd.
17) Mithila Laghu Bitta Bikas Bank Ltd.
18) Womi Microfinance Bittiya Sanstha Ltd.
19) Laxmi Microfinance Bittiya Sanstha Ltd.
20) Civil Microfinance Bittiya Sanstha Ltd.
21) Mahila Sahayatra Microfinance Bittiya Sanstha Ltd.
22) Vijaya Laghubitta Bittiya Sanstha Ltd.
23) Kisan Microfinance Bittiya Sanstha Ltd.
24) NMB Microfinance Bittiya Sanstha Ltd.
25) Forward Community Microfinance Bittiya Sanstha Ltd.
26) Reliable Microfinance Bittiya Sanstha Ltd.
27) Mahuli Samudyik Laghubitta Bittiya Sanstha Ltd.
28) Suryodaya Laghubitta Bitiya Sanstha Ltd.
29) Mero Microfinance Bittiya Sanstha Ltd.
30) Samata Microfinance Bittiya Sanstha Ltd.
31) RSDC Laghubitta Bitiya Sanstha Ltd.
32) Samudayik Laghubitta Bitiya Sanstha Ltd.
33) National Microfinance Bittiya Sanstha Ltd.
34) Nepal Sewa Laghubitta Bitiya Sanstha Ltd.
35) Unnati Microfinance Bittiya Sanstha Ltd.
36) Swadeshi Lagubitta Bittiya Sanstha Ltd.
37) NADEP Laghubitta Bittiya Sanstha Ltd.
38) Support Microfinance Bittiya Sanstha Ltd.
39) Arambha Microfinance Bittiya Sanstha Ltd.
40) Janasewi Laghubitta Bittiya Sanstha Ltd.
41) Chautari Laghubitta Bittiya Sanstha Ltd.
42) Ghodighoda Laghubitta Bittiya Sanstha Ltd.
43) Asha Laghubitta Bittiya Sanstha Ltd.
44) Nepal Agro Microfinance Bittiya Sanstha Ltd.
45) Creative Laghubitta Bittiya Sanstha Ltd.
46) Ramaroshan Laghubitta Bittiya Sanstha Ltd.
47) Gurans Laghubitta Bittiya Sanstha Ltd.
48) Ganapati Laghubitta Bittiya Sanstha Ltd.
49) Infinity Microfinance Bittiya Sanstha Ltd.
50) Adhikhola Laghubitta Bittiya Sanstha Ltd.
51) Swabhiman Microfinance Bittiya Sanstha Ltd.
52) Sparsha Microfinance Bittiya Sanstha Ltd.
53) Sabaiko Microfinance Bittiya Sanstha Ltd.
54) Aarthik Samriddhi Laghubitta Bittiya Sanstha Ltd
55) Sadhana Laghubitta Bittiya Sanstha Ltd.
56) NIC Asia Laghubitta Bittiya Sanstha Ltd.
57) Nagarik Laghubitta Bittiya Sanstha limited
58) Sahakarya Laghubitta Bittiya Sanstha limited
59) Trilok Laghubitta Bittiya Sanstha Ltd.
60) Sarathi Laghubitta Bittiya Sanstha limited
61) Manakamana Laghubitta Bittiya Sanstha Ltd.
62) Sajeelo Laghubitta Bittiya Sanstha Ltd.
63) Satyawati Laghubitta Bittiya Sanstha limited
64) Buddha Jyoti Laghubitta Bittiya Sanstha Limited
65) Samaj Laghubitta Bittiya Sanstha Limited
66) Dibya Laghubitta Bittiya Sanstha Limited
67) Cweda Laghubitta Bittiya Sanstha Limited
68) Grameen Swayamsewak Laghubitta Bittiya Sanstha Limited
69) Mahila Laghubitta Bittiya Sanstha Limited
70) Adarsha Laghubitta Bittiya Sanstha Ltd.
71) Unique Nepal Lagubitta Bittiya Sanstha Ltd.
72) Manushi Laghubitta Bittiya Sanstha Ltd.
73) Smart Laghubitta Bittiya Sanstha Limited
74) Mahila Samudayik Laghubitta Bittiya Sanstha Limited
75) Rastra Utthan Laghubitta Bittiya Sanstha Limited
76) Solve Laghubitta Bittiya Sanstha Limited
77) Dhaulagiri Laghubitta Bittiya Sanstha Limited
78) NESDO Samriddha Laghubitta Bittiya Sanstha Limited
79) Garibi Nyunikaran Laghubitta Bittiya Sanstha Limited
80) NRN Laghubitta Bittiya Sanstha Limited
81) Jiban Bikash Laghubitta Bittiya Sanstha Limited
82) Gharelu Laghubitta Bittiya Sanstha Limited
5. NRB also functions as a Central Bank which function as to formulate the necessary monetary and exchange policy, maintain price stability and consolidate the balance of payments for the sustainable development of the economy from Nepal and develop a safe, healthy and efficient payment system; Regulation, inspection and monitoring adequate to maintain the stability and healthy development of the banking and financial system; and to improve public credibility with the entire banking and financial system of the country.
6. The Nepal Rastra Nepal Rastra Bank, built in accordance with the Nepal Bank Rastra Nepal Rastra Act, 2012 (1955), was established under this law. The NRB is an autonomous and eternal successor organism. There is a separate stamp for the commercial transaction of Nepal Rastra Bank. Subject to this Act, Nepal Rastra Bank may acquire, use, retain, sell and dispose of other real and personal property.
7. The headquarters of Nepal Rastra Bank is located in Kathmandu. Nepal Rastra Bank can open branches, branch offices, and other offices anywhere in Nepal and beyond, and appoint agents or agents to meet their needs.
(a) formulate the necessary monetary and exchange policies to maintain and manage price stability and the balance of payments for the sustainable development of the economy;
(b) promote the stability and liquidity required in the banking and financial sectors;
(c) develop a safe, healthy and efficient payment system;
(d) regulate, inspect, monitor and monitor the banking and financial system;
(e) promote Nepal’s entire banking and financial system and strengthen its public credibility.
9. The duties, duties, and powers of Nepal Rastra Bank are as follows:
a) issue bills and coins;
(b) formulate, implement or implement the monetary policy measures necessary to maintain price stability;
(c) formulate the exchange policy and implement or implement it;
(d) determination of the exchange rate system;
(e) administer and operate foreign exchange; It prepares and formulates policies for formulating foreign exchange. It can give the right to other banks for the management, control, and exchange of foreign currency as per the provision of the act.
(f) grant a license to commercial banks and financial institutions to carry out banking and financial operations and to regulate, inspect, monitor and supervise such transactions;
(g) act as banker, adviser and financial representative of the Government of Nepal;
(h) act as a banker of commercial banks and financial institutions and act as a lender of last resort; While accepting deposits, fixing the rate of interest and providing banking facilities to the public, other commercial banks need to take suggestion and instruction of Central bank. Other banks should deposit certain percent of deposit into Nepal Rastra Bank. Such function ensures the payment of the public deposit.
i) establish and promote the payment, compensation and settlement system and regulate these activities;
(j) all other necessary functions that NRB must perform to achieve, implement or have executed the objectives of Nepal Rastra Bank as per the bank act.
10. Notwithstanding the provisions of the applicable law, NRB is entitled to the following privileges and facilities:
(a) Exemption from all types of taxes, fees, and charges on income, capital transactions, houses, land, assets, etc.
b) Nepal Rastra Bank does not have to pay a registration fee for the registration of loan or refinancing documents.
(c) None of the documents related to the Nepal Rastra Bank requires tax stamps.
(d) In the export and import of notes, coins, gold, silver and paper, metal, chemicals and other materials used for the printing of notes and coins, there are no taxes, duties or customs duties.
11. Any contact of the Government of Nepal with the Nepal Rastra Bank and the Nepal Rastra Bank with the Government of Nepal will be made through the Ministry of Finance.
12. Nepal Rastra Bank may, in order to achieve its objectives, carry out the necessary coordination with the public authorities or their agencies or bodies. Nepal Rastra Bank provides the necessary information on the balance of payments, banking and financial matters at the request of the Government of Nepal.
13. NRB represents Nepal in international organizations and associations in areas of responsibility of Nepal Rastra Bank work areas, such as monetary policy, exchange, and balance of payments policy, banking supervision and other related matters. Although Nepal Rastra Bank, as a representative of Nepal, participates in international organizations or associations, it assumes responsibility and assumes the tasks that must be performed on behalf of the country.
14. NRB regularly publishes and transmits information on its analyzes based on data on macroeconomics, developments in financial markets, currency circulation, price stability, the balance of payments and currencies, etc. for the public in its official site.
15. Nepal Rastra Bank opens and maintains an account for the Government of Nepal and other government agencies, commercial banks and financial institutions, public companies, foreign diplomatic missions, foreign central banks, foreign banks, and international organizations and associations. Nepal Rastra Bank prescribes the procedures to open and maintain such accounts. Nepal Rastra Bank does not operate an account for individuals, businesses and political organizations.
16. Nepal Rastra Bank has a Board of Directors composed of the following members:
(b) Secretary, Ministry of Finance – Member
(c) Two vice-governors – member
(d) Three directors appointed by the Government of Nepal as representatives of economic, supervisory, banking, financial and commercial law.
17. Government of Nepal, the Council of Ministers appoints the governor on the recommendation of the educated reference committee. The government of Nepal appoints the lieutenant governor on the recommendation of the governor. Government of Nepal appoints the directors of the Council of Ministers. The Ministerial Council of the Government of Nepal appoints a number of different sectors of economic, monetary, banking, financial, commercial, administrative and commercial law professionals in the appointment of directors.