Introduction
Understanding the historical milestones, legislative facts, and technological advancement dates of the Nepalese banking sector is crucial for candidates preparing for Loksewa and banking examinations.
Main Content
| Topic / Program | Description / Date / Period |
|---|---|
| Initiation of Monetary Policy | NRB formally started issuing Monetary Policy from F.Y. 2059/60 (2059/03/32) |
| Semi-annual review of Monetary Policy | From F.Y. 2061/62 |
| Quarterly review of Monetary Policy | From F.Y. 2073/74 |
| Financial Sector Reform Program | Policy strategy introduced in B.S. 2057 (2000 AD) and fully implemented from B.S. 2059 (2002 AD) |
| Priority Sector Credit Program | Made mandatory by NRB for commercial banks in B.S. 2031 (1974 AD) |
| Production Credit for Rural Women (PCRW) | Started in B.S. 2039 (1982 AD) jointly by Nepal Govt, NRB, and UNICEF |
| Intensive Banking Programme | Started in B.S. 2038 (1981 AD) through commercial banks on NRB direction |
| Rural Credit Program in Nepal | Started in B.S. 2049 (1992 AD) with ADB tech/financial support establishing Purwanchal Gramin Bikas Bank |
| Banking Liberalization | Formally started in F.Y. 2041/42 (1984 AD) with establishment of Nepal Arab Bank (now Nabil Bank) |
| Banking Promotion Committee | Established under NRB in B.S. 2023 |
| First Governor of NRB | Himalaya Shamsher J.B.R. (B.S. 2013 Baisakh 14 to 2017 Magh 25) |
| Current Governor of NRB | Dr. Bishwonath Poudel (18th Governor) |
| NRB Governor Rank in Official Protocol | 12th position |
| Establishment of Nepal Rastra Bank | Baisakh 14, 2013 B.S. under Nepal Rastra Bank Act, 2012 |
| Paid-up Capital of Nepal Rastra Bank | NPR 5 Billion |
| Establishment of Rastriya Banijya Bank | Magh 10, 2022 B.S. under Rastriya Banijya Bank Act, 2021 |
| Establishment of Agricultural Development Bank | Magh 7, 2024 B.S. under ADB Act, 2024 |
| ADBL registered as Public Limited Company | Ashadh 31, 2062 B.S. |
| ADBL licensed as 'A' class bank | Chaitra 3, 2062 B.S. |
| Establishment of NIFRA | Established B.S. 2075/02/25; licensed 2075/10/28; operations started B.S. 2075 Phalgun 22 |
| First Joint Venture Bank | Nabil Bank (formerly Nepal Arab Bank Ltd.) established B.S. 2041 Ashadh 29 |
| First Development Bank of Nepal | Nepal Industrial Development Corporation (NIDC) established B.S. 2016 Ashadh 1 |
| Establishment of Co-operative Bank | B.S. 2020 Bhadra 28 (later converted to ADBL in B.S. 2024) |
| First Regional Commercial Bank / Private Sector Commercial Bank | Nepal Sri Lanka Merchant Bank |
| First 100% Domestic Private Sector Commercial Bank | Lumbini Bank Limited (Est: B.S. 2055) |
| First Rural Development Bank | Purwanchal Gramin Bikas Bank (Est: B.S. 2049) |
| First Finance Company in Nepal | Nepal Housing Development Finance Co. established B.S. 2049 Shrawan 11 |
| First Cooperative Society in Nepal | Bakhan Rin Sahakari Sastha, Chitwan (Est: B.S. 2013 Chaitra 20) |
| National Cooperative Day | Chaitra 20 |
| Internet Banking Service | Introduced by Kumari Bank Limited in 2002 AD |
| Credit Card Service | Introduced by Nabil Bank Ltd in early 1990s (B.S. 2047) |
| Visa Debit Card Service | Introduced by Nepal Investment Bank Limited (NIBL) |
| ATM Card Service | Introduced by Himalayan Bank Limited in 1995 AD (B.S. 2052) |
| Tele / Telephone Banking | Introduced by Himalayan Bank Limited |
| SMS / Mobile Banking | Introduced by Laxmi Bank Limited in 2004 AD |
| ABBS & Branchless Banking (BLB) | Introduced by Everest Bank Limited |
| First Robot Digital Assistant in Bank | 'Pari' humanoid robot at Nepal SBI Bank Durbarmarg branch on B.S. 2074 Ashadh 23 |
| First Paper Money in World | China (9th Century Tang Dynasty, widespread as 'Jiaozi' during Song Dynasty) |
| First Country to Use Current Account | United Kingdom |
| Origin of Banking System | Italy (from word 'Banco') |
| Modern Banking System | Started in United Kingdom |
| World's First Bank | Bank of Venice (1157 AD in Italy) |
| World's First Central Bank | Sveriges Riksbank (Sweden, established 1668 AD) |
| Mother of Central Banks | Bank of England |
Key Takeaways
- Nepal Rastra Bank was established on Baisakh 14, 2013 B.S., and its paid-up capital is NPR 5 Billion.
- Himalaya Shamsher J.B.R. was the 1st Governor, and Dr. Bishwonath Poudel is the 18th Governor (12th in national protocol).
- Himalayan Bank introduced ATM cards in Nepal in 1995 AD, while Kumari Bank introduced Internet Banking in 2002 AD.
- Bank of Venice (1157 AD) is the world's first bank, and Sveriges Riksbank (1668 AD) is the world's first central bank.
What to Avoid
- Do not confuse the first ATM provider (Himalayan Bank) with the first Credit Card provider (Nabil Bank).
- Do not state that NRB issued monetary policy from B.S. 2013; formal issuance began in F.Y. 2059/60.
- Do not mistake the establishment year of Agricultural Development Bank (B.S. 2024) with its 'A' class license year (B.S. 2062).
FAQ
Q1: When was Nepal Rastra Bank established and what is its paid-up capital? It was established on Baisakh 14, 2013 B.S., and its paid-up capital is NPR 5 Billion.
Q2: Which bank introduced Internet Banking and ATM service in Nepal? Kumari Bank introduced Internet Banking (2002 AD) and Himalayan Bank introduced ATM service (1995 AD).
Q3: Who was the first Governor of Nepal Rastra Bank? Himalaya Shamsher J.B.R. was the first Governor.
Q4: Which is recognized as the world's first bank and first central bank? Bank of Venice (1157 AD) is the world's first bank, and Sveriges Riksbank of Sweden (1668 AD) is the world's first central bank.
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