18 MPs Register 77 Amendments to Nepal Rastra Bank Bill

Kathmandu. 18 MPs from various political parties have registered 77 amendment proposals on the 'Nepal Rastra Bank (Third Amendment) Bill, 2083' in the House of Representatives.

The amendment proposals, registered as per Rule 114 of the House of Representatives Regulations, 2083, have been approved by Speaker Dolprasad Aryal. 

The amendment-proposing MPs have demanded revisions on important issues such as digital banking, central bank digital currency, cryptocurrency regulation, and the structure and qualifications of the board of directors to make the country's central bank technology-friendly.

Most MPs have proposed new provisions to regulate the increasing use of technology in the bill.

MP Ganesh Karki has proposed to include a clear legal definition of 'Digital Bank'. Similarly, MP Kamal Subedi has demanded that 'Central Bank Digital Currency be included in the Act with legal recognition.'
MP Ganesh Parajuli has clarified that cryptocurrencies or virtual currencies issued by the private sector will not be given legal recognition in Nepal and has proposed strict criteria for the licensing and regulation of 'Virtual Asset Service Providers'. He has demanded that a provision for operating a 'Regulatory Sandbox' for testing financial technology and digital payments be included in the Act.

Amendments have been proposed to make the process of selecting the bank's board of directors and leadership more inclusive and systematic. MPs Pushpa Raj Kandel, Lima Adhikari, and Ashuda Kumari Baral have registered proposals that at least one woman director must be compulsorily appointed to the board of directors. Similarly, MP Kamal Subedi has demanded that the total number of board directors be fixed at 7, with at least 2 women.

MP Sushil Khadka has proposed that the tenure of the Governor, Deputy Governor, and Directors should be reduced from the existing 5 years to 4 years.

MPs Lima Adhikari, Khusbu Oli, and Ramesh Kumar Mallah, among others, have proposed provisions requiring those aspiring to be directors to have a postgraduate or doctoral degree in Economics, Monetary, Banking, Public Administration, or Law, and 10 to 15 years of high-level experience in the relevant field.

MP Guruprasad Baral has put forward a proposal that at least 2 years must have passed after separating from the position of Chief Executive Officer of the bank before being appointed Governor.

MP Ganesh Karki has proposed that the Rastra Bank should make necessary regulatory arrangements to increase the scope of the bank's work and duties and to prevent cyber attacks, digital fraud, and misuse of the financial system. The provision to create criteria for temporary freezing of victim funds to prevent fraud through technology is mentioned in his amendment proposal.

To make the announcement and implementation of monetary policy more transparent, MP Dr. Krishna Hari Budhathoki has proposed that monetary policy should be formulated and published on the first day of the fiscal year. Similarly, MP Pushparaj Kandel has demanded a provision that a report on the implementation of monetary policy should be submitted to the government every three months.