Nepal Rastra Bank (NRB) has prepared draft guidelines to ensure the responsible, ethical and transparent use of artificial intelligence (AI) by banks and financial institutions. The proposed framework seeks to improve efficiency while protecting data privacy, reducing cyber risks and preventing discriminatory outcomes. It covers AI applications such as credit assessment, fraud detection, customer support, risk analysis and regulatory compliance. The central bank has asked institutions to categorise AI systems based on risk, establish strong governance mechanisms and hold senior management accountable for AI-driven decisions. Through this initiative, NRB aims to create a more competitive, inclusive and accessible financial system and has invited feedback from stakeholders by mid-January.
