Nepal Rastra Bank Flashcards
What is the purpose and composition of the Management Committee?
Purpose: To ensure the smooth operation of the Bank’s business.
Composition:
- Governor (Chairperson)
- Two Deputy Governors (Members)
- Senior officer designated by the Governor (Member-Secretary)
What is the composition of the Audit Committee?
One Director designated by the Board (Coordinator)
One subject expert designated by the Board (Member)
Chief of Internal Audit Department of the Bank (Member)
What are the key functions, duties, and powers of the Audit Committee?
Submit reports and recommendations to the Board on accounts, budget, and audit procedures.
Ensure proper audit and preparation of periodic balance sheets and other documents.
Supervise the implementation of risk management policies.
Audit managerial performance to ensure compliance with laws.
Frame bye-laws for auditing in line with prevailing laws and international standards.
What are the duties of the committee regarding monetary and regulatory policies?
Monitor the operation of monetary and regulatory policies.
Assess the soundness of the banking system, money, capital, and foreign exchange markets.
Evaluate the impact of policies on the banking system and significant events.
What are the professional responsibilities of the Governor and Deputy Governor?
Fully devote their professional service to the Bank.
Prioritize the Bank’s interests while discharging duties.
Not accept gifts or loans that may influence their duties.
What restrictions apply to the Governor and Deputy Governor?
Cannot assume any office, accept jobs, or render services elsewhere, except in non-profit organizations like medical, engineering, or banking associations.
What are the confidentiality requirements for Bank employees?
Maintain confidentiality of unpublished information.
Do not use confidential information for personal gain.
What is the general provision regarding the Bank’s capital?
Capital equivalent to NPR 5 Arba.
Capital can be altered by the Government of Nepal (GON) in consultation with the NRB.
What are the restrictions on the Bank’s capital?
Capital received from GON cannot be transferred or used as collateral for debt.
How is the Bank’s net profit or loss computed?
Accounts prepared as per NAS/IAS/NFRS/IFRS.
Deduct:
- Losses sustained or anticipated.
- Net valuation loss or gain.
- Bad or doubtful debts.
- Depreciation of property.
What is the purpose and composition of the Inquiry Committee?
Purpose: To conduct an inquiry before the removal of the Governor.
Composition:
- Retired Justice of the Supreme Court (Chairperson)
- Two renowned persons from economic, monetary, banking, financial, or commercial sectors (Members)
How is the vacancy of a Director filled?
GON appoints an appropriate person for the remaining term.
Who acts as Governor in case of absence?
The senior Deputy Governor is deputed to act as Governor if the Governor dies, resigns, falls sick, or is unable to perform duties.
