KATHMANDU, June 17: Banks and financial institutions (BFIs) may soon be barred from leaving the posts of Chief Executive Officer (CEO) and other senior management positions vacant for more than three months, under a draft amendment proposed by Nepal Rastra Bank (NRB).
The central bank has circulated amendments to the Employee Regulations of BFIs, covering appointment timelines for senior executives, overtime limits, employee benefits, and workplace conduct. The draft seeks to curb excessive working hours, stating: “Employees shall not be required to work overtime for more than 24 hours a week.” NRB plans to issue a model regulation, which BFIs will be required to adopt and implement.
Under the proposal, BFIs must advertise vacancies on their websites and align appointments with their strategic plans, commercial requirements, and human resource policies. Internal promotions will prioritize performance evaluations over other criteria.
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The draft also strengthens employee welfare provisions. Female staff will be entitled to 14 weeks (98 days) of maternity protection leave with full pay. If additional leave is required, it may be deducted from other entitlements, or extended as unpaid leave for up to one year on medical recommendation. Employees would also receive a minimum of seven additional days of annual leave with full benefits.
To safeguard ethical practices, the draft prohibits employees from enticing customers for personal gain or participating in auctions and debt recovery activities linked to BFIs. Institutions will also be required to issue and enforce a code of conduct to prevent sexual harassment, ensuring a safe and dignified workplace. A monitoring sub-committee—comprising two male and two female staff—will be formed to investigate complaints and uphold gender equality.
The proposed reforms are part of NRB’s broader effort to strengthen governance, protect employee rights, and ensure accountability in Nepal’s banking sector.
