Rana, who has done his graduation in military affairs from The Lawrance School- Sanawar in Himachal Pradesh, has served in the Nepal Army for 39 years.
He had also completed Officers' Cadet Course from Royal Military Academy, Sandhurst, UK.
Rana joined the Army in November 1970.
A reception was hosted at Nepal Army Headquarters yesterday to bid farewell to the outgoing chief of Army Staff Gen Chhatra Man Singh Gurung, who retired from the service on Sunday.
Rana was appointed to the top post of the Nepal Army through a cabinet decision, following which Gen Gurung had introduced him as his successor to President Ram Baran Yadav.
Rana is the son of Aditya Shumsher Rana, a former Major- General of the Nepal Army, and great-grandson of former Prime Minister Chandra Shumsher Rana, who ruled the country for 30 years between 1901 and 1930.