Objectives of Nepal Rastra Bank | Functions of Nepal Rastra Bank | Central Bank of Nepal | Financial Management
Objectives of Nepal Rastra Bank
Listed below are some of the most important objectives of Nepal Rastra Bank as outlined in its Act:
- To formulate monetary and foreign exchange policies in order to maintain the stability of prices and balance of payments in order to sustain the economy.
- To promote economic stability and liquidity required by the banking and financial sector.
- To develop a safe, stable and efficient payment system.
- To regulate, inspect, supervise and monitor the banking and financial systems.
- To promote the entire banking and financial system of the Kingdom of Nepal and to enhance its public credibility.
Functions of Nepal Rastra Bank
The following are a few of the functions of Nepal Rastra Bank outlined in the Nepal Rastra Bank Act:
- To manage the issue of notes and the circulation of money in the economy.
- To formulate appropriate monetary policies to maintain price stability and to implement these policies,
- To formulate foreign exchange policies for the benefit of the country,
- To determine the system of foreign exchange rates,
- To manage and operate foreign exchange reserves,
- To grant commercial banks and financial institutions licenses to carry out banking and financial activities and transactions, as well as to regulate, inspect, supervise, and monitor these activities and transactions;
- To act as banker, advisor, and financial agent to His Majesty’s Government
- To serve as a banker and lender of last resort for commercial banks and financial institutions,
- To establish and promote a system of payment, clearing, and settlement as well as to regulate these activities,
- To implement any other necessary functions which the Bank has to carry out in order to achieve the objectives of the Bank under this Act.