No need to rewrite bill designed to amend Banks and Financial Institutions Act, 2073: MoF

KATHMANDU: The Ministry of Finance (MoF) has sent a letter to the Finance Committee of the House of Representatives stating there is no need to rewrite the bill designed to amend the Bank and Financial Institutions Act, 2073.  

At today’s meeting of the committee, Chairperson Santosh Chalise said the MoF had responded to the Committee, citing no need to rewrite the bill. The Committee had asked the MoF to suggest revisions if rewriting were necessary to further refine the bill in light of current circumstances. The measure is now under the Committee’s consideration.  

“We sent a letter to the MoF and Nepal Rastra Bank (NRB) after the Committee received suggestions that the bill should be revised. However, we have been advised that rewriting is unnecessary and that amendments can be made by the Committee as required,” he added.  

Earlier, the Finance Committee had discussed the bill with banking experts, former bankers and bank representatives. Participants recommended amending the draft to reflect recent geopolitical shifts and the current domestic situation, noting that it has been pending before Parliament since April 2023.  

Members also observed that the bill’s provisions should be contextualised, given how the sector’s circumstances have evolved over the past two years.  

The bill is expected to play a key role in establishing legal arrangements for the effective management and regulation of banks and financial institutions, based on both national and internationally developed frameworks of financial security and risk.

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