Nepal Rastra Bank Issues Directive to Ensure Business Continuity Amid Security Challenges

11th September 2025, Kathmandu

The Nepal Rastra Bank (NRB), the central bank of Nepal, has issued a special directive to all commercial banks, development banks, finance companies, and payment-related institutions, instructing them to ensure business continuity (BCP) while adhering to national security protocols.

NRB Issues Directive to Continue Business

The notice, released on September 10, 2025 (Bhadra 25, 2082), comes amid widespread political unrest and disruptions from the ongoing “Gen-Z” protest movement. This directive is a critical step by the central bank to maintain stability and public confidence in the financial system.

Key Instructions from the Central Bank

The NRB’s directive is a two-pronged approach, focusing on both physical safety and digital resilience. First, it mandates that financial institutions must prioritize the safety of their employees and infrastructure by limiting their physical presence. According to the notice, only “essential” staff should be required to work on-site, with all other employees working remotely. This measure is intended to minimize the risks posed by security lockdowns and the potential for violence or vandalism, which have already impacted some financial institutions. The central bank also urged institutions to comply with instructions from the Ministry of Home Affairs and Nepal Police to ensure a coordinated response to the crisis.

Second, the directive places a strong emphasis on maintaining digital operations. The NRB has instructed institutions to ensure that critical digital systems, such as mobile banking, e-wallets, ATMs, and payment processing platforms, remain fully functional and accessible to the public. It also requires the activation of remote working arrangements for staff not on-site, with a strict warning to implement robust IT security protocols to prevent cyber risks. This focus on digital services is a strategic move to ensure that even with physical branches closed, the public can still access essential financial services without disruption.

Why the Directive is Crucial

The NRB’s notice is a direct response to the unprecedented disruptions caused by the recent protests. The escalation of the movement has led to curfews, security lockdowns, and a temporary halt to normal economic activities, including the repeated suspension of trading on the Nepal Stock Exchange (NEPSE). By issuing this directive, the central bank is attempting to mitigate the risk of the financial sector grinding to a halt, which would have severe consequences for the economy.

For banks and financial institutions, the directive means they must quickly adapt to a hybrid operational model, balancing the need for on-site staff for critical functions with the safety of a remote workforce. This will require them to strengthen their IT infrastructure and security measures to handle a larger volume of remote operations. For customers, the directive offers a crucial reassurance that essential financial services will remain available. It encourages them to use digital channels for transactions, which is a safer and more reliable option during periods of physical restrictions.

Broader Implications and Public Trust

The NRB’s action is part of a coordinated response across Nepal’s financial regulatory landscape. It follows similar moves by other institutions, such as the Nepal Insurance Authority’s directive for insurance companies to adopt work-from-home policies and Jyoti Bikash Bank’s decision to temporarily close its branches and ATMs. These collective efforts highlight the fragility of traditional business models in a crisis and the need for greater resilience.

Ultimately, one of the central bank’s most significant concerns is maintaining public confidence in the financial system. By ensuring that critical services remain online and by providing transparent communication, the NRB aims to prevent panic withdrawals or a loss of trust that could destabilize the entire economy. The success of this directive will depend on the quick adaptation of financial institutions to the new operational reality. In the long term, this crisis could accelerate Nepal’s transition toward a more digitized and resilient financial system, better equipped to handle both security threats and operational disruptions. The central bank’s move is a clear signal that even in a time of great instability, the financial system must continue to function as a pillar of the economy.

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