Protests at NRB

Nepal Rastra Bank (NRB) has remained paralyzed for more than a week due to stringent protests launched by two employees’ unions. Governor Dr Yuba Raj Khatiwada has been barred from carrying out his duties and the central bank administration remains almost defunct. This is happening at a time when the central bank’s monitoring and supervision role has become all the more important as there are growing signs of trouble in the economy.



The huge and widening trade deficit, a protracted liquidity crunch, the shortage of Indian currency and deepening recovery problems in the banking sector demand a central bank that is stronger and more vigilant than ever. Ironically, there are suspicions that the present standoff at NRB might have been partly stoked by elements that want to weaken the central bank’s leadership.



The demand lists of the two trade unions, which are close to the Maoists and the Nepali Congress, are long (one is 50-point and the other 37-point) but there are hardly any new demands. Nor are all the demands justifiable. Actually, some of them are ludicrous—such as a demand for permanent appointment for staff hired on contract basis, mainly through political influence. A similar attempt by the National Human Rights Commission to give its staff serving more than two years permanent job status was shot down by the Supreme Court on the ground that it infringes upon the rights of others to compete for those jobs.



The same argument applies here. Most of the other demands are related to employees’ benefits and personal development. We want to remind the central bank staff that they are already among the most privileged public sector employees in Nepal in terms of perks and benefits. The employees’ unions may have the right to opt for collective bargaining but it’s unacceptable that they paralyze the central bank to force management’s hand over unjustified demands.



We urge the unions to immediately halt the protests and begin an earnest dialogue with management. There are also suspicions that the unions are launching their protests simply for political reasons. It’s more than just a coincidence that the trade unions affiliated to the Maoists and the NC have joined hands to protest against a governor appointed by a UML-led government. If this becomes a trend, no governor can function effectively since some disenchanted trade union will always find one reason or another to protest against him or her.



We have heard some genuine grievances from NRB employees. They say Governor Khatiwada hasn’t always been fair while awarding promotions or transferring bank staff. If that’s the case, it will surely undermine Khatiwada’s leadership. It is in his and NRB’s own best interest that he correct such lapses sooner rather than later.

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