House committees emphasise separate regulatory bodies for aviation and banking reforms

July 4, Kathmandu: Members of Nepal’s House of Representatives have underscored the need for distinct regulatory and operational bodies to strengthen the aviation and banking sectors during separate committee meetings held today.

In the International Relations and Tourism Committee meeting, lawmakers, including Bhim Prasad Acharya, Sudan Kirati, Prabhu Shah, Hit Bahadur Tamang, and Shishir Khanal, stressed the necessity of separate entities for regulating and operating air services to enhance safety and efficiency.

They argued that the government’s focus on building airports without prioritising safety has led to increased accidents.

The committee discussed the Air Service Bill and the Civil Aviation Authority Bill, with MPs emphasising the importance of a robust, independent regulatory body to ensure aviation safety.

Culture, Tourism, and Civil Aviation Minister Badri Pandey stated that the bills, developed after extensive stakeholder consultations, would bolster air service safety once passed.

Committee Chair Rajkishor Yadav committed to fast-tracking or continuously deliberating the bills to ensure their swift finalisation.

In a parallel meeting, the Finance Committee deliberated on the Banking and Financial Institutions Bill.

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel highlighted that the bill aimed to streamline and modernise banking operations, addressing existing challenges.

Responding to lawmakers’ queries, DPM Paudel clarified that individuals entering Nepal from India can bring up to USD 5,000, with additional amounts permitted upon customs declaration.

He noted that Indian notes of 500 and 1,000 denominations were not accepted in Nepal due to India’s non-acceptance policy, allowing only notes of 100 or below, alongside provisions for ATM and QR code transactions.

Lawmakers raised concerns about public awareness of the USD 2,500 limit, the difficulty of obtaining smaller Indian notes, and the need for Nepali banks to establish branches abroad and enable Indian ATM withdrawals in Nepal.

Deputy PM Paudel assured the committee that the Finance Ministry and Nepal Rastra Bank would provide all necessary information to finalise the bill promptly.

Both committees emphasised the urgency of passing these legislative measures to enhance safety, efficiency, and public trust in Nepal’s aviation and banking sectors.