January 3: Nepal Rastra Bank (NRB) has implemented Nepal Rastra Bank Act 2073 in a bid to make Nepali banks and financial institutions (BFIs) disciplined, transparent and up-to-date. The NRB Act 2073 which was endorsed by Parliament came into effect after verification from the President on November 14. The new Nepal Rastra Bank Act 2073 has been brought by terminating and modifying several mechanisms of the erstwhile Act and adding six new mechanisms. NRB claims that the new Act will further strengthen the BFIs.

"The preface of NRB Act 2058 has been amended and made vast," said Ram Hari Neupane, NRB Director, Legal Division. According to him, the amended Act has already come into effect."NRB can now mobilise various financial and monetary tools as per the requirement in order to manage liquidity of the market," he added, "Previously, there were limited tools for liquidity management." The new Act has stressed on expansion of financial accessibility by strengthening the financial system through effective supervision and regulation of the BFIs.

As per the amended Act, the capital of NRB has raised to Rs 5 billion from Rs 1 billion. The Act has given authority to NRB of conducting pre-liquidation process of BFIs under liquidation mechanism. Experts believe that the successful execution of the new Act will increase financial thrive and stability in the country.