Banking Exam Question - What is NRB Directives? Why it is Necessary to Follow Rules of NRB Directives? Expalin

Introduction - Nepal Rastra Bank Directives & It's Uses

• The Nepal Rastra Bank will issue various policies, directives and guidance guidelines to regulate the banks and financial institutions, which are called the National Bank Directives.
• Unified Directives 2068 was prepared by the guidelines issued by various countries in different times from the Nepal National Bank. This is how to modify time frame.
• Such directives are NRB Directives in foreign exchange departments and bank and financial sectors, fully followed and implemented.

Nepal Rastra Bank (NRB), the Central Bank of Nepal, was established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding the development of the embryonic domestic financial sector. 

According to area 14 of Nepal Rastra Bank Act, 2002, the Board of Nepal Rastra Bank (NRB) involves seven individuals: four ex officio individuals - the Governor (who is the Chairman), the Secretary, Ministry of Finance, two Deputy Governors, and three different Directors, who are designated from among the people prestigious in the field of Economics, Monetary, Banking, Finance and Commercial Laws. 

The Governor, Deputy Governors and different Directors are selected by Government of Nepal, Council of Ministers for term of five years. Government may, reappoint the resigning Governor for another term and the resigning different Directors for any term, on the off chance that it is considered fundamental.