The central bank enforces Payment Systems Inspection and Supervision Bylaw 2021
KATHMANDU, Sept 1: Nepal Rastra Bank (NRB) is forming an oversight unit to monitor and regulate the payment service providers and payment service operators across the country.
Enforcing a separate Payment Systems Inspection and Supervision Bylaw 2021, the apex authority of the country’s financial system has come up with the provision. The unit to be established under NRB’s Payment Systems Department will track online platforms that carry out financial transactions to see if they have been abiding by the existing laws.
According to the bylaw, the oversight unit will also be liable for maintaining a five-year track record of such companies.
The bylaw has also provisioned to form a Payment Systems Recommendation Committee led by a deputy governor of NRB. The panel has been authorized to incorporate experts from outside the central bank to formulate necessary policies to regulate the sector.
After the COVID-19 pandemic hit the country last year, the number as well as frequency of digital payments through QR codes, connectIPS, mobile banking, internet banking and mobile wallets, among others, has increased significantly in recent days. However, under the pretext of underlying technical glitches, customers have been facing problems time and again to carry out smooth transactions through online payment systems.