NRB Forms Expert-Led Committee for Banking Sector Reform

For the first time in its history, Nepal Rastra Bank (NRB) has formed a 3-member recommendation subcommittee led by an external expert to suggest reforms in the banking sector. The subcommittee was formed based on a proposal by NRB Governor Dr. Bishwo Paudel during the central bank’s board meeting held on Jestha 21.

The subcommittee is coordinated by Dr. Rewat Bahadur Karki, former Chairman of the Securities Board of Nepal (SEBON) and a former NRB Director. Other members include Bhuvan Dahal, former CEO of Sanima Bank and past President of the Nepal Bankers’ Association, and Guru Paudel, Executive Director of NRB, who will serve as the member secretary.

The committee has been given 30 days to study and submit its recommendations on necessary reforms in the banking sector, including current challenges, institutional structure, risk management, regulatory frameworks, and long-term strategic improvements.

This marks the first time NRB has formed such a committee under the leadership of an external expert, signaling a major policy shift towards inclusive and independent reform planning.

Since its inception, NRB has traditionally handled banking licenses, supervision, regulation, and reforms internally. The new subcommittee is expected to bring fresh perspectives and practical recommendations for the development and strengthening of Nepal's banking system.