Individuals aged below 25 or above 70 would be ineligible to serve as bank directors
KATHMANDU, March 22: A bill aiming to amend the Bank and Financial Institutions Act, 2073, has been introduced with provisions including a maximum age limit of 70 years for bank directors. Finance Minister Barshman Pun presented this proposal in the House of Representatives.
Currently, the law stipulates that individuals must be at least 25 years old to be nominated or elected as a bank director. While there is a minimum age requirement, there is no provision regarding a maximum age limit in the existing law.
Govt proposes tightening terms for bank board directors
The proposed amendment bill seeks to address this gap by introducing a maximum age limit. It suggests adding a provision to this regard in section 18 (1) of the current Act.
According to the proposal, individuals aged below 25 or above 70 would be ineligible to serve as bank directors. This measure aims to ensure that the age of nominated or elected directors is clearly defined.
If the proposed bill is approved by parliament, individuals aged over 70 would be barred from being nominated or elected as bank directors.
Additionally, the bill proposes that a graduate with at least 5 years of experience would be eligible to become a director. Currently, the requirement stands at three years of experience.
Furthermore, individuals who have borrowed more than 1 percent of a bank or financial institution's paid-up capital would be disqualified from directorship. Those involved in drug trafficking, money laundering, and passport misuse are also ineligible.
The bill also includes a provision stating that the resignation of a director would be automatically approved. Additionally, it mandates that board meetings must be held monthly.
