Step‑by‑Step Guide: Applying to Nepal Rastra Bank’s Proposed 2026 FinTech Regulatory Sandbox

Nepal Rastra Bank (NRB) has not yet released a formal 2026 circular announcing a new FinTech sandbox. The most recent public framework comes from the 2023‑2024 sandbox guidelines (NRB Circular No. 02/2024, dated 12 March 2024). Until an official gazette notification appears, any 2026 sandbox will likely follow that existing structure. This guide treats the upcoming sandbox as a proposed programme and flags every procedural detail as “based on the current framework” so you can verify against the eventual NRB notice.

Eligibility criteria

According to the 2024 circular, applicants must meet the following baseline requirements:

• Incorporated as a private limited company under the Companies Act 2063 (or a recognised foreign entity with a Nepalese subsidiary).
• Minimum paid‑up capital of NPR 5 crore (subject to revision in the forthcoming notice).
• A FinTech product or service that addresses a clear market gap — payments, lending, KYC/AML tech, regtech, or blockchain‑based solutions.
• Demonstrated technical capacity: a prototype or minimum viable product ready for live testing.
• Commitment to comply with NRB’s AML/CFT, data‑privacy, and consumer‑protection regulations.

These points are drawn directly from the 2024 circular; any 2026 amendment will be published on the NRB website and in the Nepal Gazette.

How to apply

NRB currently accepts sandbox applications through its online portal (https://sandbox.nrb.org.np) and, as a fallback, via email to fintech@nrb.org.np. The submission package must include:

• Completed application form (downloadable from the portal).
• Business plan outlining the problem, target users, revenue model, and scaling roadmap.
• Technical architecture diagram with API specifications, data‑flow description, and security controls.
• Compliance framework covering KYC/AML, data‑localisation, and incident‑response procedures.
• Board resolution authorising the sandbox participation and designating a compliance officer.

All documents should be in PDF format, each under 10 MB, and named according to the portal’s convention.

Review stages and typical timelines

1. Preliminary screening – NRB’s FinTech Unit checks completeness and eligibility (≈ 10 business days).
2. Technical evaluation – External experts assess architecture, scalability, and security (≈ 3 weeks).
3. Regulatory assessment – The Supervision Department reviews compliance, risk‑management, and consumer‑impact aspects (≈ 2 weeks).
4. Approval decision – The Sandbox Committee issues a formal letter with conditions, or a rejection with reasons (≈ 5 business days after the regulatory assessment).

Overall, the end‑to‑end cycle has historically taken 6‑8 weeks from receipt to decision.

Sandbox duration and extensions

The standard testing window is six months, extendable by up to another six months if the participant demonstrates measurable progress and submits a justified extension request at least 30 days before expiry. The 2024 guideline caps total sandbox time at 12 months per cohort.

Ongoing reporting obligations

During the live phase, participants must file:

• Monthly progress reports (template supplied by NRB) covering transaction volumes, user‑growth metrics, and any system incidents.
• Quarterly risk‑assessment updates highlighting emerging AML/CFT flags, data‑breach attempts, or regulatory changes.
• Immediate incident reports (within 24 hours) for any security breach, service outage > 30 minutes, or consumer complaint escalation.

Reports are uploaded to the same portal; NRB may request ad‑hoc data extracts for supervisory analysis.

Exit criteria and post‑sandbox pathways

At the end of the sandbox, NRB evaluates the final report against three exit routes:

• Full licence – Granted if the solution meets all prudential, consumer‑protection, and systemic‑risk standards.
• Temporary authorisation – Allows continued operation under heightened monitoring for up to 12 months while the applicant completes remaining licensing requirements.
• Discontinuation – The participant winds down the test, returns any test‑environment data, and receives a closure certificate.

The exit decision is communicated in writing within 15 business days of the final report submission.

Disclaimer

All procedural details above reflect the NRB FinTech Sandbox Framework issued in 2024. Until Nepal Rastra Bank publishes an official 2026 circular or gazette notification, treat this guide as a provisional roadmap. Verify every requirement, deadline, and portal link on the NRB website (www.nrb.org.np) or the Nepal Gazette before you submit an application. This article is for informational purposes only and does not constitute legal or regulatory advice.