Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank (NRB) has issued a new circular amending its Unified Directives 2082, introducing stricter disclosure and compliance requirements for bank executives, directors, and major shareholders across all licensed Class A, B, and C financial institutions.
The central bank issued the directive under Section 79 of the Nepal Rastra Bank Act, 2058, making significant additions to governance and transparency rules applicable to the country’s banking and financial sector.
Under the revised provisions, banks and financial institutions are now required to collect and submit detailed personal and professional disclosures when appointing or nominating directors, chief executive officers (CEOs), or senior management officials.
The disclosures include:
NRB has also mandated that existing executives currently serving in these positions must submit the same disclosures. Any future changes in these details must be updated and reported to the central bank.
In a separate amendment under Unified Directive 10/082, NRB has tightened regulations on the purchase and transfer of promoter shares.
When shareholding exceeds 5 percent of paid-up capital or NPR 2.5 million, financial institutions must collect detailed beneficial ownership information and submit it to the central bank.
The required disclosures include identity details, family background, criminal history, legal disputes, tax liabilities, blacklist status, conflict of interest declarations, foreign asset ownership, professional background, and financial capacity.
For institutional investors holding stakes in banks, the rule extends to individuals who directly or indirectly control 15 percent or more of the investing entity.
NRB has further mandated continuous monitoring and reporting, requiring institutions to update the central bank whenever there is any change in disclosed information.
The central bank said the amendments aim to strengthen transparency, improve corporate governance, and reduce risks linked to hidden ownership, conflicts of interest, and financial irregularities in the banking sector.
The directive has been circulated to the Office of the Governor, Ministry of Finance, supervisory departments, and key banking associations for implementation and compliance monitoring.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
