Nepal Moves to Fix Monetary Policy Release Date to Shrawan 1

The government has begun legal preparations to fix Shrawan 1 (mid-July) as the annual release date for the monetary policy starting from the next fiscal year. The consensus was reached during a section-by-section discussion on the proposed amendment to the Nepal Rastra Bank Act, 2058 by the Finance Committee of the House of Representatives. The proposed provision aims to establish a fixed schedule for monetary policy announcements, similar to the existing practice of presenting the national budget on a predetermined date. During the discussion, the committee also approved several other revised proposals concerning the financial sector. Meanwhile, representatives of the Nepal Bankers’ Association and chief executive officers of various banks raised concerns over Section 100 of the Nepal Rastra Bank Act, arguing that its existing provisions could lead to the disqualification of bank officials even for relatively minor disciplinary actions. However, the committee said it could not immediately incorporate the proposed changes because the current amendment bill does not include Section 100 among the provisions open for revision. Under Rule 113 of the House of Representatives Regulations, amendments must remain within the subjects and principles covered by the original bill, creating a legal limitation on addressing the bankers’ demands at this stage. The Finance Committee said it would seek to resolve such legal and procedural issues in the future while addressing broader concerns raised by the financial sector.