The functions of NRB are to formulate required monetary and foreign exchange policies so as to maintain the stability in market prices, to issue currency notes, to regulate and supervise the banking and financial sector, to develop efficient payment and banking systems among others.

The incumbent governor of Nepal Rastra Bank is CA[9] Maha Prasad Adhikari while Dr. Gunakar Bhatta is the spokesperson.

[14][11] Seeing this as a dependence to India, King Mahendra, the son of King Tribhuvan established a central bank on April 26, 1956 in order to reduce dependence on India, replacing Indian currency being circulated in the market and strengthen the countries' sovereignty by making Nepal independent in foreign currency exchange.

To open its bank account in Reserve Bank of India, the then Governor Himalaya Shumsher JB Rana sent a letter to then India’s secretary of economic affairs, Braj Kumar Nehru and in the direction of Nehru, the first account of NRB was opened there.

The early banknotes issued during the rule of King Tribhuvan were not circulated by a Central Bank but rather were initially held by His Majesty’s Government, then called the Government of Nepal, through the “Sadar Muluki khana” (Central Treasury) from September 1945 through February 1960 and were signed by a Kajanchi (head of the treasury).

[11][10] In 1974, NRB became the founding member Asian Clearing Union (ACU), with headquarters in Tehran, Iran.

The financial sector reform based on the Financial Sector Strategy Paper that Government of Nepal publicly announced on 22 November 2000 enacted Nepal Rastra Bank Act, 2002 under which the bank is running till date.

They aim to increase portfolio investment, enhance competitiveness within different parts of areas, encourage business investment and opportunities, and improve risk management practices by reducing the risk of financial situations and facilitating more approaches to finance social and environmental businesses.

Later day the workshop was held on Kathmandu to facilitate discussion among government officials and different characteristic financial institutions and global organizations.

IFC's Representative says that attention to the opportunity for financial institutions to build up their portfolios by conducting thorough risk assessments, accenting on environmental and social factors.

Nepal, a most important country for IFC, remains a focus for sustainable energy access, financial inclusion, tourism infrastructure development, and job creation.

As of June 30, 2016, IFC's investment portfolio in Nepal was greater than $50 million, illustrating a dedication to fostering inclusive private sector development in different parts of the country.

[29] A report titled "Current Macro-Economic and Financial Situation" is published monthly, as required by the Nepal Rastra Bank Act, 2002.