Top 5 Objectives of Nepal Rastra Bank : Central Bank of Nepal

This article is about Top 5 Objectives of Nepal Rastra Bank- Central Bank of Nepal.

“A central bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country.”-Bank of International Settlement.

Central bank of Nepal is the supreme monetary institution of Nepal. In Nepal, first time the Nepal Rastra Bank Act was introduced in 2002. Nepal Rastra Bank Act 2002 has been amended and replaced by Nepal Rastra Bank Act 2058. It is the act to provide legal right to the Nepal Rastra Bank to act as the Central Bank of Nepal.

Top 5 Objectives of Nepal Rastra Bank : Central Bank of Nepal

Nepal Rastra Bank Act 2058 has 12 chapters and 112 sections. The chapters included under this act are as given below:

1. stablishment, objective, function, responsibility and authority.
2. Formation of board of directors and its functions, responsibility and preference.
3. Financial provisions.              ‘
4. Monetary functions and open market operation.
5. Monetary unit, banknote and coins.
6. Policy, regulation and reserves of foreign exchange.
7. Relationship with His Majesty’s Government.
8. Regulation, supervision and monitoring of banks.
9. Balance Sheet, Audit and Report.
10. Default and penalty actions.

According to Nepal Rastra Bank Act 2058, the objectives of Nepal Rastra Bank are as given below:

Top 5 Objectives of Nepal Rastra Bank : Central Bank of Nepal

Most of these objectives of Nepal Rastra Bank specified in Nepal Rastra Bank Act,  are briefly highlighted below:

1. To formulate necessary monetary and foreign exchange policies in order to maintain the stability of price and balance of payment for sustainable development of the economy,
2. To promote economic stability and liquidity required in banking and financial sector,
3. To develop a secured, healthy and efficient system of payment,
4. To regulate, inspect, supervise and monitor the banking and financial system,
5. To promote entire banking and financial system of the kingdom of Nepal and to enhance its public credibility.
   

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   Writer : Rajesh lamichhane, Birtamod.

Related articles:

Introduction to Nepal Rastra bank
Functions of Nepal Rastra Bank
Roles of Nepal Rastra Bank
Nepal Rastra Bank Act 2058
Nepal Rastra Bank Exchange Rate
Nepal Rastra Bank Interest Rate
Nepal Rastra Bank Forex
Nepal Rastra Bank Foreign Exchange Rate
History of central banking system