Kathmandu, August 21
Chief executive officers (CEOs) of commercial banks will now be eligible to become governors of Nepal Rastra Bank, after the Finance Committee of the House of Representatives decided to open the path for them on Friday.
The committee is currently discussing the Nepal Rastra Bank Bill, 2083, registered by the government in Parliament. The government’s proposed bill had sought to remove the provision allowing commercial bank CEOs to become governors. Under the existing Nepal Rastra Bank Act, 2058, however, a person who has served as a commercial bank CEO is eligible to become governor.
The Finance Committee has been holding continuous discussions on the Nepal Rastra Bank Bill, 2083. During Friday’s discussion on the qualifications for governor, the committee decided to add provisions allowing commercial bank CEOs and individuals who have worked for international expert institutions to become eligible for the post.
Committee Chairperson Dr Krishna Hari Budhathoki said the committee had also introduced a provision requiring commercial bank CEOs to complete a two-year cooling-off period after leaving their posts before becoming eligible for appointment as governor.
“There was extensive discussion on the qualifications for governor, and they have largely been retained as they are,” Budhathoki said. “We have decided that commercial bank CEOs, who were not included in the bill, will also be eligible to become governor, subject to a two-year cooling-off period.”
He said Friday’s committee meeting also decided to include in the bill a provision allowing individuals who have worked at international expert financial institutions to become eligible for the post of governor.
The bill states that a person with at least a master’s degree from a recognised university in economics, monetary affairs, banking, finance, statistics or accounting, public administration, commerce, management or commercial law, and at least 10 years of experience at the gazetted special class level of the Nepal government, as an executive director of a bank, university professor, executive-level position at an international financial institution or an equivalent position, will be eligible to become governor.
The committee has added that a person who has served as a commercial bank CEO and completed two years since leaving the position will also be eligible for the post.
Under the existing provision, a person with at least a master’s degree in economics, monetary affairs, banking, finance, commerce, management, public administration, statistics, mathematics or law, along with professional experience in the fields of economics, monetary affairs, banking, finance or commercial law, can become governor.
Regarding work experience, the existing provision recognises experience at the gazetted special class level of the Nepal government or the bank, as a university professor, as the chief executive of a Class A commercial bank or financial institution, at the executive level of an international organisation or an equivalent position, or a position higher in rank or status.
