4th August 2020, Kathmandu
Nepal Rastra Bank is planning to turn Nepal Clearing House Limited (NCHL) into a non-profit company and modify its working objectives.
The Government and NRB are working on a program for the last 7 years which is known as “National Switch”. Now, NRB plans to give this responsibility to NCHL.
NRB owns a 10% share in NCHL.
When Rastra Bank was handling Cheque Clearing, they were adopting traditional methods. Therefore, NCHL was set up with the initiative to move Cheque Clearing into a modern system. This was a joined initiative between NRB and the Banker’s Association.
Over time, NCHL has been involved in activities other than the purpose for which it was established. They are performing a “for-profit” business in the name of Nepal Rastra Bank. Once NCHL is considered as a non-profit, it can no longer take profit businesses in the name of Rastra Bank.
Suggested Reads:
- Online Shopping Grows Amid COVID! Are Traditional Retail Stores in Danger?
- Digital Payment: Challenges and Possibilities in Nepal
- Nepal’s History In Digital Payment System, NCHL
