Nepal Rastra Bank was established in April 26, 1956 and is the central bank of Nepal. It supervises the banks and financial institutions in Nepal and guides monetary policy. Nepal Rastra Bank also oversees foreign exchange rates and the country’s foreign exchange reserves and regulates the foreign exchange policy. The bank is one of the principal owners of the Nepal Stock Exchange. As per section 14 of Nepal Rastra Bank Act, 2002 the Board of Nepal Rastra Bank comprises seven members four ex official members the Governor the Secretary, Ministry of Finance, two Deputy Governors, and three other Directors, who are appointed from amongst the persons renowned in the field of Economics, Monetary, Banking, Finance and Commercial Laws. The Governor, Deputy Governors and other Directors are appointed by Government of Nepal Council of Ministers for term of five years. Government may, reappoint the retiring Governor for another one term and the retiring other Directors for any term, if it is deemed necessary.