Gen Z movement forces banks in Nepal to form “Critical Committees” for service continuity

KATHMANDU: The Gen Z movement, which has pushed Nepal into an unprecedented standstill, has triggered a new practice in the country’s banking sector: the creation of “Critical Committees” to ensure continuity of essential financial services. Banks and financial institutions (BFIs) have begun operating under Business Continuity Plans (BCPs) by mobilizing limited staff to provide cash and digital services despite ongoing curfews and restrictions.

According to Nepal Bankers’ Association (NBA) and directives from Nepal Rastra Bank (NRB), branches are being opened from 10 a.m. to 2 p.m. under the supervision of special crisis-management teams. These committees are tasked with protecting employees, safeguarding bank assets, and maintaining critical services such as cash withdrawal, ATM operations, RTGS, IPS, ConnectIPS, and international trade transactions.

“Every bank has a Business Continuity Plan. In times of crisis, Critical Committees are activated to run banking operations smoothly,” said one senior banker, noting that this mechanism ensures that citizens’ primary need—cash access—is not disrupted.

Lessons from Past Crises

Officials confirmed that similar structures were formed during the COVID-19 pandemic. Nepal Bank’s Chief Finance Officer, Prakash Kumar Adhikari, said, “In COVID times, we formed Quick Response Committees. The same model has now been reactivated, with delegated authority beyond CEOs to make sure banking does not collapse during leadership or mobility challenges.”

Krishi Bikas Bank’s company secretary, Himalal Paudyal, highlighted that the committee’s role is not only about customer-facing services but also about internal coordination. “The team works with management, regional offices, and branches to ensure timely communication and safety of both staff and assets,” he explained.

Regulatory Guidance and Limited Operations

On Thursday, Nepal Rastra Bank issued a special circular directing all banks to run their sensitive systems with minimal staff to continue critical payment and settlement services. Following this, the Nepal Bankers’ Association announced that limited branches would remain operational in coordination with security forces and local administrations.

Anil Sharma, CEO of the NBA, confirmed that three branches in Kathmandu, two each in Lalitpur and Bhaktapur, and selected branches outside the Valley have been authorized to open. “Banks are providing minimum services to ensure liquidity and payment continuity, but transaction volumes are very low, with only 15–20 transactions recorded at some branches today,” Sharma said.

Banking in Times of Uncertainty

Bankers underline that while digital banking and international trade support remain operational, physical banking is being cautiously managed. The Critical Committees, they say, have now become central to Nepal’s financial resilience during crises caused by political unrest, natural disasters, or pandemics.

“This is a new kind of financial discipline introduced by necessity,” remarked an industry insider. “Nepal’s banking sector is adapting fast to crisis management, ensuring that people’s trust in financial institutions does not erode even in the middle of national disruptions.”

With the Gen Z-led protests continuing to disrupt daily life, banks are under immense pressure to guarantee uninterrupted financial services—turning the Critical Committee model into a defining feature of Nepal’s banking sector under crisis.