14th June 2025, Kathmandu
Nepal Rastra Bank (NRB) has taken a major step to improve the country’s financial system. It has formed a three-member task force to recommend reforms in the banking sector. The task force is expected to focus on stability, regulation, and modernization.
NRB Banking Reform Task Force
Led By Dr. Rewat Bahadur Karki
The central bank appointed Dr. Rewat Bahadur Karki as the coordinator. He is the former chairman of the Securities Board of Nepal. Former banker Bhuvan Kumar Dahal will serve as a member. The Executive Director of NRB’s Bank and Financial Institutions Regulation Department, Guru Paudel, will be the member-secretary.
The decision was made in a meeting of NRB’s Board of Directors on Jestha 21. The move came at the proposal of NRB Governor Dr. Biswo Nath Paudel. The task force has been given 30 days to submit its recommendations.
Clear Goals And Scope
The task force will study the current state of Nepal’s banking sector. It will identify key problems and suggest long-term solutions. Their work will focus on:
Making banking policies more prudent and responsive
Improving risk-based supervision
Enhancing customer-friendly services
Strengthening the regulatory framework
Increasing credit flow in rural areas
The group will also review the impact of mergers and acquisitions. They will identify the problems that follow such processes and suggest how to solve them.
Support For Economic Revival
The task force will recommend how banks can help revive economic activity. It will focus on the role of the banking sector in supporting businesses, job creation, and investment.
Another key area will be Nepal’s inclusion on the FATF grey list. The task force will study how banks can help Nepal get removed from the list by improving transparency and compliance.
NRB’s Role in Capital Market Development
Besides banking, the task force will provide advice on how NRB can coordinate better with capital market institutions. The goal is to support the growth of Nepal’s financial markets as a whole.
The central bank wants to understand both immediate issues and long-term risks. The team will recommend strategies that make banks more stable, competitive, and inclusive.
CBFIN Welcomes The Initiative
The Confederation of Banks and Financial Institutions Nepal (CBFIN) has welcomed the move. It called the formation of the task force a “historic step.”
CBFIN stated that this is the first time a national-level subcommittee has been formed with a direct focus on banking sector reform. The organization expressed hope that the task force will identify real challenges and offer practical solutions.
They also appreciated NRB’s leadership. According to CBFIN, such a focused initiative could set the standard for future reforms. It may also strengthen coordination between regulators and financial institutions.
Looking Ahead
The banking sector in Nepal faces challenges ranging from liquidity stress to compliance issues. NRB’s latest move signals its commitment to transparency, stability, and growth.
The task force’s findings and recommendations will likely shape banking policy for years to come. As the deadline approaches, financial institutions, experts, and regulators will be watching closely.
If the taskforce delivers solid recommendations, it could become a model for reform not just in banking but across Nepal’s wider financial sector.
For more: NRB Banking Reform Task Force