KATHMANDU, Sept 5: The government is considering setting up the National Payments Board (NPB) to look after the financial transactions carried out via digital platforms.
The Ministry of Finance (MoF) has prepared the draft bill to amend the ‘Payments and Settlement (First Amendment) Act 2025,’ which proposes the formation of the board under the chairmanship of the governor of Nepal Rastra Bank (NRB). Secretary of the MoF, Financial Comptroller General, a deputy governor of the NRB, chairperson of Nepal Telecommunications Authority, an expert of the sector and executive director of Payment Systems Department of the NRB will be among the members of the NPB.
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The draft proposes giving recognition to “technology-provider institutions” as banks, financial institutions, or service providers that supply software or systems for technology-based payment operations. It also talks about opening the door for foreign payment institutions, which are operating in at least ten countries, and meeting NRB compliance requirements, to apply for licenses to operate in Nepal.
The existing act empowers the NRB to license, regulate, supervise, and enforce compliance for payment system operators and service providers. According to the MoF, the revision in the act is necessary to ensure Nepal’s payment system keeps pace with the demands of the digital era.
The proposed amendment has envisioned making digital transactions more transparent and secure, while supporting economic growth, generating employment, reducing poverty, and promoting financial inclusion. Integrating digital technology into the payment system is expected to expand access for women, marginalized groups, and disadvantaged communities.
Likewise, the draft bill highlights Nepal’s goal of aligning payment systems with Sustainable Development Goals such as decent work and economic growth, innovation, infrastructure development, and reducing inequality in financial access. “A safe and reliable financial system, the government believes, will encourage innovation and investment while strengthening overall economic stability,” reads the bill.
Issuing a public notice, the MoF has invited suggestions from all stakeholders to incorporate their feedback in the bill.
