The government has registered a bill to amend the Nepal Rastra Bank Act, 2058 in the Federal Parliament. The Ministry of Finance tabled the bill in the House of Representatives on Monday, aiming to make the central bank more autonomous, accountable, and technology-driven.

The proposed amendment introduces broad reforms in the central bank’s role, regulatory authority, financial system oversight, and digital financial infrastructure in response to evolving domestic and international financial developments.

One of the key highlights of the bill is the legal recognition of “digital currency” for the first time. Under the proposal, digital currency issued by Nepal Rastra Bank will be treated as equivalent to physical banknotes, giving it legal validity.

The bill also expands the definition of financial institutions to include remittance service providers, payment system operators, digital wallets, and payment gateways, bringing them directly under the regulatory oversight of the central bank.

A new provision on “financial holding companies” has also been introduced to better regulate ownership structures and subsidiary arrangements within banking groups.

The composition of the Nepal Rastra Bank Board is also proposed to be revised. The number of government-appointed directors would increase from three to five, alongside existing members including the finance secretary and deputy governors.

The bill further strengthens the central bank’s role as a macroprudential regulator, focusing on financial stability, risk management, and expanding public trust in the banking system.

Additionally, the central bank would be allowed to make limited investments in institutions involved in credit rating, asset management, payment clearing, and financial information services, up to 10 percent of their capital.

Changes have also been proposed in the foreign exchange management framework, with clearer provisions for exchange rate policy formulation and implementation.

According to the government, the amendment aims to align Nepal Rastra Bank with international standards, strengthen institutional independence, and modernize regulatory frameworks in line with the growing digital financial ecosystem.

This will mark the tenth amendment to the Nepal Rastra Bank Act since its enactment. The reform is also intended to implement provisions outlined in the current fiscal budget, monetary policy, and the central bank’s strategic plan (2022–2026).