General Knowledge and Nepal Rastra Bank
Domain scope
The General Knowledge and Nepal Rastra Bank section tests stable facts about Nepal's geography, constitution and public institutions, plus the central bank's history, legal basis and functions. Questions are recall-heavy but often hinge on one date or one mandate.
Nepal facts to anchor
- Nepal is a landlocked South Asian country bordered by India and China; capital Kathmandu; official language Nepali; currency Nepalese rupee.
- It is a federal democratic republic under the Constitution of Nepal promulgated in 2015 (2072 BS), with 7 provinces, 77 districts and 753 local units.
- The President is head of state; the Prime Minister is head of government; Parliament is federal and bicameral.
Nepal Rastra Bank
- Established on 26 April 1956 under the Nepal Rastra Bank Act 1955; the current legal framework is the NRB Act 2002 (2058 BS).
- Headquarters in Kathmandu; first governor Himalaya Shumsher Rana.
- Core functions: formulate and execute monetary policy; issue notes and coins; act as banker to the government; lender of last resort; regulate banks and financial institutions; manage foreign exchange reserves; oversee payment systems.
Worked example
Question: In which year was Nepal Rastra Bank established? Reason: the enabling Act is 1955, but the bank began operations in 1956. Answer: 1956. A distractor using 1955 tests whether you separate the law from the institution's establishment.
Traps
Do not confuse NRB with Nepal Bank Limited, the first commercial bank (1937). Do not describe NRB as a commercial bank. Do not mix the 2015 constitution with earlier constitutions. Read established versus Act passed carefully.