The central bank is established in every country for the monetary, banking and financial development. The central bank is established for regulating the banks and financial institutions as well as helping in formulating the monetary policies in the economy. It was the bank of bank. The major functions of central bank are as follows –
1. issues banknotes and coins
2. formulate necessary monetary policies and implementation in order to maintain price stability.
2. To formulate foreign exchange policies and to implement or cause to implement them.
3. manage and operate foreign exchange reserve.
4. Issuing license to commercial banks and financial institutions to carry on banking and financial business and to regulate, inspect, supervise and monitor them.
5.Act as banker/ agent/ financial advisor of the Government of Nepal.
6.Act as the bank of the banks and to function as the lender of the last resort
Develop and promote a secure, healthy, efficient payment system.
7.Raising money for the Government of Nepal.
8. Make appropriate supervision of the baking and financial system in order to maintain its stability and foster its healthy development.
9. Perform other activities required to obtain other objectives.
Tags:
Banking