KATHMANDU: The Finance Committee of the House of Representatives has unanimously approved the report on the Nepal Rastra Bank bill. The committee finalized the bill during its meeting on Wednesday, introducing several key amendments.
Under the new provisions, the term for the governor, deputy governors, and board members of the central bank has been reduced from five years to three years. However, they may be reappointed for an additional two years based on their performance. The committee also mandated that at least one woman must be appointed as an independent board member.
The committee has expanded the regulatory and supervisory scope of the central bank. The Citizen Investment Trust, Employees Provident Fund, and Social Security Fund will now fall under the oversight of Nepal Rastra Bank. Additionally, the central bank’s management committee is now required to meet at least twice a month.
To address potential conflicts of interest, the bill introduces a cooling-off period, barring current officials of banks and financial institutions, as well as CEOs who have not completed two years since retirement, from serving as board members. Furthermore, individuals holding more than 0.5 percent shares in any financial institution will be ineligible to serve on the central bank’s board.
The legislation also sets a fixed schedule for monetary policy. Nepal Rastra Bank is now required to formulate, announce, and publish its annual monetary policy on July 17 (Shrawan 1) each year.
