Nepal Rastra Bank Act of 2002

Nepal

(amended through 2006)

The Nepal Rastra Bank Act of 2002 (amended through 2006) provides for the establishment of the Nepal Rastra Bank to function as the central bank. The Nepal Rastra Bank was developed to formulate necessary monetary and foreign exchange policies and regulate, inspect, and supervise the banking and financial system as well as carry out other important functions related to banking in Nepal.

This act 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.