Kathmandu. The government is going to bring a provision barring the Chief Executive Officer (CEO) of commercial banks from becoming the Governor of Nepal Rastra Bank.
The Ministry of Finance is going to make the third amendment to the Nepal Rastra Bank Act, 2058 BS. The Nepal Rastra Bank Bill, 2083 prepared by the Ministry to amend this Act has already been registered in the parliament.
By amending Clause 20 of the bill, the Ministry is preparing to bar the CEO of commercial banks from becoming the Governor of Nepal Rastra Bank. The amendment has removed the provision that CEOs of commercial banks are also eligible to become the governor of the Nepal Rastra Bank on the basis of their current work experience.
A person with at least a Master’s degree in economics, monetary, banking, financial, statistics or accounting, public administration, commerce, management, commerce law and at least 10 years of experience in the government special class, executive director of a bank, professor at a university or executive level post of an international financial institution or equivalent post would be eligible to become the governor. g.
Currently, work experience means the experience of working in the government of Nepal or a bank or a professor of a university, or the chief executive of a commercial bank or financial institution of class ‘A’ or the executive level of an international organization or equivalent post or experience of a higher position than that position.
The removal of the word ‘commercial bank’ in the bill to amend the Act and the provision of 10 years of work experience indicates that the government is trying to stop the CEOs of commercial banks from coming to the governor’s post.
The bill also proposes to barring a person holding more than 1 per cent share in a commercial and financial institution to become the governor, deputy governor and director of the NRB. Earlier, such a ban was imposed on those with more than 5 percent shares.
Similarly, the bill has proposed that the executive directors should recommend double the number of names for the vacant posts at least 30 days before the vacancy of the post of deputy governor. Earlier, this system did not exist.
On the recommendation of the Governor, the cabinet meeting of the government has proposed to appoint a deputy governor.
