Following the 1960 coup by King Mahendra, the enactment of the Constitution of 1962, made the Rastriya Panchayat the supreme legislative body in the country, replacing the Parliament of Nepal.

The 1980 referendum voted in favor of a reformed Rastriya Panchayat and consequently, members were directly elected.

The council had the right to discuss any subject except the conduct of the monarchy, actions of Supreme Court judges and any outstanding legal cases.

It also did not have the power to bring any legislation pertaining to the Royal Nepal Army without the approval of the king.

The chair and the vice-chair were supported by a twenty one member Steering Committee which advised with regard to proper conduct of business and other matters related to the Rastriya Panchayat.