KATHMANDU, Aug 20: The Finance Committee of the Federal Parliament has decided to amend the Nepal Rastra Bank Act to limit the tenure of the central bank’s top officials for three years with a possible extension of two more years.
Under the proposed amendment, the regular tenure of the governor, deputy governors and directors of Nepal Rastra Bank (NRB) would be set at three years. The government could extend their tenure by up to two additional years based on their performance and prevailing circumstances.
Revised interest rate corridor system introduced
The existing law provides a five-year term for the NRB governor, deputy governors and directors, with the possibility of another term.
Analysts say the parliamentary committee may have been influenced by a similar provision in India, where the governor of the Reserve Bank of India serves a three-year term, with the possibility of an extension of up to two years.
