Kathmandu [Nepal], July 19 – A Nepalese lawmaker has called for sweeping reforms to the country’s central bank law arguing that the existing legal framework must be updated to strengthen financial governance and support the nation’s long-term economic ambitions.
Speaking during the 17th meeting of the House of Representatives’ Finance Committee on Sunday lawmaker Sushil Khadka said amendments to the Nepal Rastra Bank Act, 2002 (2058 BS) are necessary to ensure that the central bank remains effective, independent and responsive to changing economic conditions.
The committee held discussions on the proposed amendment bill with officials from Nepal Rastra Bank, the Nepal Bankers’ Association (NBA) and the Confederation of Banks and Financial Institutions Nepal (CBFIN).
Khadka said banks and financial institutions currently manage more than Rs 8.2 trillion in public deposits making them directly accountable to the Nepali people. He stressed that strengthening the country’s banking and financial system would be essential to achieving Nepal’s national targets of 7% annual economic growth and building a US$100 billion economy in the coming years.
He argued that the amended law should enhance the institutional autonomy and effectiveness of Nepal Rastra Bank while allowing the central bank to recruit specialised experts needed to address increasingly complex financial challenges.
The lawmaker also called for stronger corporate governance provisions and reforms that would ensure banks and financial institutions operate in the broader public interest rather than under the influence of a limited group of promoters.
The proposed amendments are currently under parliamentary review as lawmakers and industry stakeholders debate changes aimed at modernising Nepal’s financial regulatory framework and reinforcing confidence in the banking sector.
