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    OBJECTIVES Functions Duties of NRB

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    Mobin Ansari
    The document outlines the objectives, functions, duties and powers of Nepal Rastra Bank, the central bank of Nepal. The bank has five main objectives: to maintain price and payment balance stability for sustainable economic development; promote stability and liquidity in the banking and financial sector; develop a secure payment system; regulate the banking and financial system; and enhance public credibility of the banking and financial system. To achieve these objectives, the bank's functions include issuing currency, formulating monetary and foreign exchange policies, licensing and supervising commercial banks, acting as the government and commercial banks' banker, and establishing payment systems. The bank also has powers under the Nepal Rastra Bank Act to carry out other incidental functions.

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    OBJECTIVES Functions Duties of NRB

    Uploaded by

    Mobin Ansari
    93 views2 pages
    The document outlines the objectives, functions, duties and powers of Nepal Rastra Bank, the central bank of Nepal. The bank has five main objectives: to maintain price and payment balance stability for sustainable economic development; promote stability and liquidity in the banking and financial sector; develop a secure payment system; regulate the banking and financial system; and enhance public credibility of the banking and financial system. To achieve these objectives, the bank's functions include issuing currency, formulating monetary and foreign exchange policies, licensing and supervising commercial banks, acting as the government and commercial banks' banker, and establishing payment systems. The bank also has powers under the Nepal Rastra Bank Act to carry out other incidental functions.

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    The document outlines the objectives, functions, duties and powers of Nepal Rastra Bank, the central bank of Nepal. The bank has five main objectives: to maintain price and payment balance stability for sustainable economic development; promote stability and liquidity in the banking and financial sector; develop a secure payment system; regulate the banking and financial system; and enhance public credibility of the banking and financial system. To achieve these objectives, the bank's functions include issuing currency, formulating monetary and foreign exchange policies, licensing and supervising commercial banks, acting as the government and commercial banks' banker, and establishing payment systems. The bank also has powers under the Nepal Rastra Bank Act to carry out other incidental functions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    93 views2 pages

    OBJECTIVES Functions Duties of NRB

    Uploaded by

    Mobin Ansari
    The document outlines the objectives, functions, duties and powers of Nepal Rastra Bank, the central bank of Nepal. The bank has five main objectives: to maintain price and payment balance stability for sustainable economic development; promote stability and liquidity in the banking and financial sector; develop a secure payment system; regulate the banking and financial system; and enhance public credibility of the banking and financial system. To achieve these objectives, the bank's functions include issuing currency, formulating monetary and foreign exchange policies, licensing and supervising commercial banks, acting as the government and commercial banks' banker, and establishing payment systems. The bank also has powers under the Nepal Rastra Bank Act to carry out other incidental functions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    OBJECTIVES, FUNCTION, DUTIES AND POWER OF

    CENTRAL BANK OF NEPAL


    Nepal Rastra Bank is also known as 'The Lender of the Last Resort' . This Bank has the
    vision to become a modern, dynamic, credible and effective Central Bank.

    In order to attain its vision, the bank follows a specific mission as to maintain macro-
    economic stability through sound and effective monetary, foreign exchange and financial
    sector policies. Such mission can be achieved only if the clear objectives are set.

    OBJECTIVES OF NEPAL RASTRA BANK


    As we know, objectives are predefined goals.

    Actually, there are five main objectives of Nepal Rastra Bank that is to be achieved. They
    are as follows:-
     To formulate necessary monetary and foreign exchange policies in order to maintain
    the stability of price and balance of payment for sustainable development of economy, and
    manage it.
     To promote stability and liquidity required in banking and financial sector.
     To develop a secure, healthy and efficient system of payment.
     To regulate, inspect, supervise and monitor the banking and financial system and
     To promote entire banking and financial system of Nepal and to enhance its public
    credibility.

    However, the central bank will extend its co-operation for implementing the economic
    policies of the Government in support to their objectives.

    FUNCTIONS, DUTIES AND POWERS OF NEPAL RASTRA BANK


    Functions are the ways to fulfill the purposes. Similarly, duties are the obligations to be
    performed and power is the ability or capacity to do something.

    Nepal Rastra Bank has to attain its predetermined objectives. So, in order to achieve those
    above five objectives, which i have mentioned earlier, the bank will have following
    functions, duties and powers as follows:

     To issue bank notes and coins.This is considered as the primary function of the
    bank.
     To formulate necessary monetary policies in order to maintain price stability and to
    implement or cause to implement them.
     To formulate foreign exchange policies and to implement or cause to implement
    them.
     To determine the system of foreign exchange rate.
     To manage and operate foreign exchange reserve.
     To issue license to commercial banks and financial institutions to carry on banking
    and financial business and to regulate, inspect, supervise and monitor such transactions.
     To act as a banker, advisor and financial agent of Government of Nepal.
     To act as the banker of commercial banks and financial institutions and to function as
    the lender of the last resort.
     To establish and promote the system of payment, clearing and settlement and to
    regulate these activities and
     To implement or cause to implement any other necessary functions which the Bank
    has to carry out in order to achieve the objectives of the Bank.

    NOTE:

     It is to be noted that, while exercising the powers under the Nepal Rastra Bank Act,
    2058 or any other prevailing law, the central Bank shall have power to carry out other
    functions and take actions, which are incidental thereto.
     No one should violate powers given to the Bank under the Nepal Rastra Bank Act
    2058.

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