NRB is the supreme authority or body which controls and stabilizes the economy of every country through various direct and indirect means. Direct means , it uses the monetary policy as a tool to expand and indirect means it uses tools like issuance of treasury bills, national saving bonds and banks rates etc.

Objectives of the NRB:

• To formulate necessary monetary and foreign exchange policies in order to maintain the stability of price and balance of payment for economic stability and sustainable development of economy and manage it.
• To increase the access of the finacial service and increase the public confidence towards the banking and financial system by maintaining stability of the banking and financial sectors.
• To develop a secure, healthy and efficient system of payments.
• The bank shall, without any prejudice to the objectives referrred to in sub-section extend coperration in the implementation of the economic policies of government of Nepal.