Nepal Rastra Bank Governor Calls for Special Powers to Address Financial Crises

Kathmandu. Nepal Rastra Bank Governor Dr. Vishwanath Poudel has demanded that the central bank be given special and decisive authority to immediately resolve potential banking and financial crises in the country.

Speaking at the Finance Committee of the House of Representatives, Governor Poudel stated that the central bank needs legal basis to make immediate and swift decisions for the sensitivity of the financial system and the security of depositors. He mentioned that the central bank is facing problems in making swift decisions due to the currently existing multi-tiered regulatory process and ambiguity in rules. Shedding light on legal and policy reforms related to the financial sector, Governor Poudel informed that the draft of the Banks and Financial Institutions Act and the Nepal Rastra Bank Act has already been registered in the parliament. He also stated that drafts of 6 important laws, including the Banking Offenses and Punishment Act, Financial Customer Protection Act, and Payment and Settlement Act, have been submitted to the Ministry of Finance. Furthermore, he informed the committee that discussions are underway on 4 other proposals including the amendment of the Exchange Entitlement Act, restructuring of financial assets, and provisions related to unclaimed deposits in the central bank's board of directors.