The NRB is the central bank and primary regulator. It issues licenses, sets interest rate corridors, and monitors the stability of the entire financial system through its Unified Directives.

Foreign entities must provide notarized incorporation documents, board resolutions, and proof of identification for authorized signatories. Compliance with KYC and Anti-Money Laundering standards is mandatory.

Under NRB regulations, if a borrower fails to meet repayment terms, the bank can recommend them to the Credit Information Bureau (CIB) for blacklisting, which restricts them from further financial transactions in Nepal.

Yes, foreign banks can operate through a branch or a subsidiary, provided they meet the minimum capital requirements and obtain prior approval from the NRB under Section 5 of BAFIA.

Borrowers have the right to receive formal notices, dispute incorrect amounts, and seek mediation. Nepali law prohibits coercive recovery tactics that violate personal privacy or dignity.

Cheque bounce is a criminal offense under the Negotiable Instruments Act. Victims can file a police report or pursue a civil suit for the recovery of the amount plus interest.

While thresholds are subject to periodic NRB updates, current regulations mandate a minimum paid-up capital of NPR 8 billion for commercial banks (Class A).