Section 29: Functions, Duties and Powers of the Board

The functions, duties and powers of the Board shall be as follows:

(a) To frame monetary and foreign exchange policies,

(b) To take necessary decisions with regard to the denominations of bank notes and coins, the figures, size, metal, materials for printing notes, and other materials; and to frame appropriate policies with regard to their issue,

(c) To frame necessary policies for causing the supervision and inspection of commercial banks and financial institutions and banking and financial arrangements,

(d) To approve the Rules and Bylaws of the Bank and to frame policies applicable to the operation and management of the Bank,

(e) To frame policies with regard to the appointment, promotion, transfer, dismissal, remuneration, pension, gratuity, provident fund, leave, code of conduct and other terms and conditions relating to the service of the employees of the Bank,

(f) To approve the annual programs and budget of the Bank and the annual auditing of accounts, and to submit its report to the Government of Nepal for information,

(g) To approve the annual report on the activities of the Bank,

(h) To frame necessary policy for the issue of a license to commercial banks and financial institutions, and for revoking such a license,

(i) To approve the limit of the loan to be provided to the Government of Nepal by the Bank,

(j) To fix the amount, limit and terms and conditions of the loan and refinance that the Bank provides to the commercial banks and financial institutions,

(k) To make decisions with regard to the Bank’s membership in international organisations and associations,

(l) To frame policy for the mobilisation and investment of the Bank’s financial resources,

(m) To submit a proposal to the Government of Nepal along with the reasons therefor if it is necessary to amend this Act,

(n) To decide on all other matters, excluding the matters which are within the authority of the Governor under this Act, and

(o) To delegate the powers vested in the Board to the Governor or the subcommittee constituted by the Board, with or without fixing the time limit.