Kathmandu. Finance Minister Dr. KATHMANDU: Nepal Rastra Bank (NRB) Act-2058 BS should be amended to make Nepal Rastra Bank (NRB) more autonomous, professional and technology-friendly. Taking part in the preliminary discussion on the bill in the Finance Committee of the House of Representatives on Friday, Minister Khatiwada clarified that the Act is going to be revised in line with the changing economic environment and the development of technology.
Finance Minister Wagle said that the amendment will address the reform commitments made during the Extended Credit Facility (ECF) taken from the International Monetary Fund (IMF) at a time when Nepal’s balance of payments was under pressure during the COVID-19 pandemic. According to him, Nepal is also a member state of the IMF and such reforms have been forwarded for economic and financial stability on the basis of the suggestions of international organizations and the country’s own need. On the issue of autonomy of the bank, Minister Wagle stressed on the need of keeping the central bank free from political interference.
He clarified that although there is a provision for the Finance Secretary to be in the board for coordination between the government’s fiscal policy and the NRB’s monetary policy, the independence of the bank would be kept intact.
Minister Wagle said that the bill has been proposed to legally incorporate the concept of ‘digital currency’ along with the rapid development of technology. According to him, the definition of terms such as financial institution, currency, monetary obligation and debt instrument has been further clarified in the proposed amendment.
Likewise, it has been proposed to make the appointments and removals of the governor and directors, functions, duties and powers of the board of directors, and calculation of net income and distributable income as per the timelines. The bill also seeks to systematize provisions such as issuance of banknotes and coins, security arrangements, and no accountability by the NRB employees for acts done in good faith. The Finance Minister said that the government has only revised the working procedure and modern requirements without making any fundamental changes in the basic structure and objectives of the existing Act.
