Submit your Article

As banks and financial institutions (BFIs) increasingly turn to artificial intelligence (AI) to streamline operations and improve customer service, Nepal Rastra Bank (NRB) has drafted a comprehensive set of AI Guidelines and circulated them among stakeholders for feedback. 

The guidelines intend to ensure safe, transparent and responsible use of AI across the financial system at a time when digital technologies are rapidly reshaping service delivery.

The proposed guidelines are designed for all institutions regulated by NRB, including commercial banks, development banks, finance companies, microfinance institutions, Nepal Infrastructure Bank, and payment system operators and service providers.

According to NRB, the primary objectives of the guidelines are to promote the adoption of AI tools in a way that enhances operational efficiency, innovation and customer experience, while safeguarding financial stability and institutional resilience. 

The guidelines state that AI-driven decisions of licensed institutions must remain transparent, explainable, fair and accountable to ensure that customer rights and data privacy are protected and that no discriminatory outcomes arise from automated systems.

The central bank has also warned licensed institutions to mitigate a wide range of risks associated with AI, including operational, ethical, systemic, model-related and cyber risks. To address these issues, all licensed institutions are required to define their AI-related risk tolerance as part of their broader risk management structure and establish strong governance mechanisms with clearly assigned roles and responsibilities.

As per the guidelines, licensed institutions must develop a comprehensive AI strategy accompanied by an integrated governance framework. This should include detailed policies, procedures and internal controls to guide the secure development, deployment and monitoring of AI models. They must also ensure that AI systems can maintain critical services during disruptions and have mechanisms in place to detect faults, restore operations and minimize service impacts.

To strengthen oversight, the guidelines require listed institutions to set up a cross-disciplinary AI steering committee—or designate an existing committee—to guide strategy, risk oversight and compliance. The committee should include senior management members with adequate expertise in technology and AI-related risks, and the overall AI framework must be approved by the Board of Directors.

The guidelines also distinguish between internal use of third-party AI tools and formal outsourcing. While internal use of ready-made AI tools for tasks such as drafting, summarizing or analysis will not be treated as outsourcing, BFIs must still follow their own risk and compliance policies. However, any AI-enabled service provided by an external vendor will require full outsourcing procedures, including due diligence, board approval and formal notification to NRB.

Licensed institutions are required to submit annual reports to the central bank, detailing AI use, risk controls and customer impacts, and maintain documentation—including data sources, algorithms and decision-making processes—for all AI systems.

Borussia Dortmund scored once in each half through Julian Brandt and Nico Schlotterbeck to ease past Hoffenheim 2-0 on Sunday and tighten their hold on third place in the Bundesliga, Reuters reported. 

Dortmund, who stretched their unbeaten league run to six matches, are third on 28 points, one behind second-placed RB Leipzig, 6-0 winners over Eintracht Frankfurt on Saturday.

Bundesliga leaders Bayern Munich are on 37 points following their 5-0 demolition of VfB Stuttgart, according to Reuters. 

Rasmus Hojlund scored both goals as Napoli went top of Serie A with a 2-1 win over Juventus, BBC reported. 

The Denmark forward, who is on loan from Manchester United, slid in to put the defending champions ahead before Juventus hit back when Kenan Yildiz equalised after a counter-attack.

However, Hojlund secured the points with his second, a 78th minute header from point-blank range, according to BBC. 

Fiorentina say they have taken security measures to protect players, staff and their families after they received "unacceptable and shameful" threats, BBC reported. 

The threats were received following the club's 3-1 loss at Sassuolo on Saturday, which left winless Fiorentina bottom of Serie A after 14 matches.

The club condemned the threats in a statement and said it "expresses its full solidarity and support for the players and their families".

The Royal Thai Army has announced launching air attacks along its disputed border with Cambodia, after accusing Cambodian forces of firing at its troops and killing at least one soldier, Aljazeera reported.

In a statement on Monday, spokesman Major-General Winthai Suvari said the Thai Army deployed aircraft after the deadly clashes in the Chong Bok area of Nam Yuen District in Ubon Ratchathani province.

Suvari said at least four other soldiers were also wounded, according to Aljazeera.

UK Prime Minister Sir Keir Starmer will host Ukrainian President Volodymyr Zelensky in London on Monday amid a continuing deadlock in negotiations to end the war in Ukraine, BBC reported.

Zelensky will attend the talks in Downing Street alongside French President Emmanuel Macron and German Chancellor Friedrich Merz.

Cabinet minister Pat McFadden said on Sunday that Ukraine's security and self-determination would be "at the heart" of the leaders' discussions in London. He said that US-led talks were at a "really pivotal moment".

The Nepal Stock Exchange (NEPSE) plunged by 21. 48 points to close at 2, 609. 69 points on Sunday.

Similarly, the sensitive index dropped by 2. 70 points to close at 448. 25 points.

A total of 10,718,615-unit shares of 325 companies were traded for Rs 5. 33 billion.

Meanwhile, Swastik Laghubitta Bittiya Sanstha Limited (SWASTIK) and Shreenagar Agritech Industries Limited (SAIL) were the top gainers today with their price surging by 10. 00 percent.

Likewise,  Bungal Hydro Limited (BUNGAL) was the top loser as its price fell by 8. 51 percent.

At the end of the day, the total market capitalization stood at Rs 1. 48 trillion.

At least 11 people – including a three-year-old child – have been killed in a mass shooting at a hostel in South Africa, BBC reported. 

Fourteen others were wounded when gunmen stormed the venue in Saulsville township, west of the capital Pretoria, early on Saturday.

At least three unknown gunmen began firing "randomly" at a group of people who were drinking, police spokesperson Brigadier Athlenda Mathe said, according to BBC.