Fintech firms can now test innovations in Nepal Rastra Bank’s regulatory sandbox
साउन १८, २०८२ १२:४१
Kathmandu. Nepal Rastra Bank (NRB) is introducing a regulatory sandbox, a controlled environment that allows fintech innovations to be tested in real market conditions under NRB’s direct supervision. To implement this, NRB has published a draft of the Guidelines on the Regulatory Sandbox and invited feedback from stakeholders.
Once in effect, licensed banks, financial institutions, and fintech companies will be allowed to trial new technologies such as digital KYC, mobile payments, and smart contracts within set criteria and timeframes.
What is a regulatory sandbox?
A regulatory sandbox allows companies to test innovative financial technologies with real users in a limited, supervised setting. According to NRB, the sandbox aims to encourage responsible innovation driven by greater internet access, wider smartphone use, and lower internet costs.
The initiative will help assess risks, improve consumer protection, and fine-tune products before full-scale launch.
Testing will typically last six months, with a possible extension of another six months. Successful trials may lead to full approval.
Who can apply?
According to the draft, the following entities are eligible:
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Licensed banks and financial institutions
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Payment service providers (PSPs)
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Payment system operators (PSOs)
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Licensed remittance companies
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Unlicensed fintech startups working on innovative financial products
Applicants must submit a detailed test plan and risk mitigation strategy.
NRB may offer temporary regulatory exemptions to encourage participation, particularly for small or new fintech firms.
What can be tested?
The following innovations can be tested within the sandbox:
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Retail payments and mobile money services
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Money transfer services
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Digital KYC and digital ID services
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APIs and smart contracts
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Embedded finance
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Financial inclusion tools
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RegTech (regulatory technology)
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Cybersecurity solutions
What’s excluded?
The sandbox will not allow testing of:
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Cryptocurrency
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Central Bank Digital Currency (CBDC)
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Private digital currencies
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Online betting or gaming
This clearly signals that Nepal will not recognize cryptocurrencies or private digital currencies in the near future.
Feedback invited
NRB has asked stakeholders to send suggestions to [email protected] by August 31, 2025
पछिल्लो अध्यावधिक: साउन १८, २०८२ १२:४१
