Wednesday, September 1, 2021

Central bank to monitor digital transaction platforms strictly

The central bank is going to form monitor digital transaction platforms strictly.

It has formed an oversight unit to monitor and regulate the payment service providers and payment service operators, according to a directives of Nepal Rastra Bank (NRB).

The NRB has enforced a separate Payment Systems Inspection and Supervision Bylaw 2021, which has envisaged a unit to be established under NRB’s Payment Systems Department that track online platforms, which carry out financial transactions to see, if they have been abiding by the existing laws.

According to the bylaw, the oversight unit will also be liable for maintaining a five-year track record of such companies.

The bylaw has also provisioned to form a Payment Systems Recommendation Committee, led by a deputy governor, which will be authorised to incorporate experts from outside the central bank to formulate necessary policies to regulate the sector.

After the Covid-19 pandemic, the banking system has seen geometric growth of digital payment system, including QR codes, connectIPS, mobile banking, internet banking and mobile wallets.

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