The Nepal Rastra Bank (NRB), established in 1956, is the central bank of Nepal. It has seven offices, located at Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and Dhangadhi.

It supervises the banks and financial institutions (licensed by the Bank) in Nepal and guides monetary policy. Nepal Rastra Bank also oversees foreign exchange rates and the country's foreign exchange reserves and regulates the foreign exchange policy.

The bank is one of the principal owners of the Nepal Stock Exchange. It is a member of the Asian Clearing Union. The Bank is engaged in the promotion of financial inclusion and is also a member of the Alliance for Financial Inclusion.

Nepal Rastra Bank, the Central Bank of Nepal, was established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding the development of the embryonic domestic financial sector. Since inception, there has been a significant growth in both the number and the activities of the domestic financial institutions.

Functions
To reflect this dynamic environment, the functions of the Bank have been recast by the new NRB Act of 2002, the preamble of which lays down the primary functions of the Bank as:

• To formulate necessary monetary and foreign exchange policies to maintain the stability in price and consolidate the balance of payments for sustainable development of the economy of Nepal;
• To develop a secure, healthy and efficient system of payments;
• To make appropriate supervision of the banking and financial system in order to maintain its stability and foster its healthy development;
• To further enhance the public confidence in Nepal's entire banking and financial system;
• To promote entire banking and financial system of the kingdom of Nepal system.

The Bank is eminently aware that, for the achievement of the above objectives in the present dynamic environment, sustained progress and continued reform of the financial sector is of utmost importance. Continuously aware of this great responsibility, NRB is seriously pursuing various policies, strategies and actions, all of which are conveyed in the annual report on monetary policy.

Vision
To become “ A modern, dynamic, credible and effective Central Bank”.

Mission
To maintain macro-economic stability through sound and effective monetary, foreign exchange and financial sector policies.

Board of Directors
As per section 14 of Nepal Rastra Bank Act, 2002, the Board of Nepal Rastra Bank (NRB) comprises of seven members: four ex officer members - the Governor (who is the Chairman), the Secretary, Ministry of Finance, two Deputy Governors, and three other Directors, who are appointed from amongst the persons renowned in the field of Economics, Monetary, Banking, Finance and Commercial Laws.

The Governor, Deputy Governors and other Directors are appointed by Government of Nepal, Council of Ministers for term of five years. Government may, reappoint the retiring Governor for another one term and the retiring other Directors for any term, if it is deemed necessary.

Useful links

Currency of Nepal:

Nepalese rupee

List of Central Banks:

Central Banks

Official website of Nepal Rastra Bank:

www.nrb.org.np

Nepal Rastra Bank Act 2002/Law:

www.nrb.org.np

Ministry of Finance of Nepal:

www.mof.gov.np