KATHMANDU: Finance Minister Dr. Swarnim Wagle has stated that the government has not interfered with the autonomy of Nepal Rastra Bank (NRB) or its governor. He made these remarks on Friday while responding to questions raised by lawmakers during a clause-by-clause discussion on the bill to amend the Nepal Rastra Bank Act, 2058, at the Finance Committee.

Minister Wagle clarified that the government does not engage in unnecessary interference regarding monetary policy, circulars, or decisions made by the central bank. He urged against falling for misconceptions that the government is pressuring the central bank through the finance secretary. ‘There is no such thing as the finance secretary unnecessarily interfering in the central bank. An attempt is being made to create a narrative that the government interferes significantly, but that is not the reality,’ he said.

He further explained that the finance secretary acts only as a bridge to coordinate between fiscal and monetary policies. While noting that it is an established practice for monetary policy to align with the spirit of the government budget, he indicated that intervention could occur under exceptional circumstances. ‘If the bank brings a policy that is completely against the government, then there is a need to apply a brake,’ he added.

During the meeting, lawmakers expressed concerns that the government is attempting to curtail the central bank’s authority. Lawmaker Parshuram Tamang argued that the central bank should not be reduced to a department of the Ministry of Finance. Similarly, lawmaker Prof. Dr. Pushpa Raj Kandel stated that the bank’s authority should not be restricted in the name of autonomy, noting that the proposed three-year term for the governor might force them to remain loyal to the government. Following the conclusion of the discussions, the committee has directed its secretariat to prepare a report on the bill.