what are the features of Nepal Rastra Bank Act 2058

The “Nepal Rastra Bank Act 2058” is the central banking law of Nepal, enacted in the year 2058 of the Nepali calendar (2001/2002 AD).The Nepal Rastra Bank (NRB) is the central bank of Nepal, responsible for formulating and implementing monetary and foreign exchange policies to promote economic stability and growth in the country. Here are some key features that were part of the NRB Act:

1. Establishment and Functions: The NRB Act establishes the Nepal Rastra Bank as the central bank of Nepal and outlines its functions, which include issuing and regulating the country’s currency, managing foreign exchange reserves, and formulating monetary policies to achieve stable prices and promote economic growth.
2. Monetary Policy: The NRB Act provides the framework for formulating and implementing monetary policy. This includes setting interest rates, reserve requirements, and other tools to influence the money supply and credit conditions in the economy.
3. Foreign Exchange Management: The Act empowers the NRB to regulate and manage the foreign exchange market, control capital flows, and maintain external stability of the Nepalese currency.
4. Banking Supervision and Regulation: The NRB Act grants the central bank authority to regulate and supervise banks and financial institutions operating in Nepal. This includes licensing, setting prudential standards, conducting inspections, and addressing issues related to the stability and soundness of the financial system.
5. Currency Issuance: The Act gives the NRB the exclusive authority to issue and manage the currency of Nepal. It establishes the legal framework for the issuance, circulation, and withdrawal of banknotes and coins.
6. Price Stability: The NRB Act emphasizes the objective of maintaining price stability as a primary goal of monetary policy. The central bank aims to control inflation and stabilize the overall price level in the economy.
7. Foreign Relations: The Act outlines the NRB’s role in managing international financial relations, including maintaining relationships with other central banks, international financial institutions, and foreign governments.
8. Data Collection and Reporting: The NRB Act empowers the central bank to collect relevant economic and financial data from various sources and to publish reports and statistics related to the country’s economic performance.
9. Advisory Role: The NRB Act may provide for the central bank’s advisory role in matters related to monetary, financial, and economic policies.