Kathmandu: It has been nearly a month since both Deputy Governor positions at Nepal Rastra Bank became vacant. Following the House of Representatives elections on March 5, the two Deputy Governors completed their five-year terms and stepped down on March 8.
Despite the positions remaining unfilled for weeks, the previous government did not initiate the appointment process due to the fresh electoral mandate. After the formation of the new government last Friday, two Cabinet meetings have already been held, including one earlier today. However, no decision has yet been made regarding the appointment of new Deputy Governors.
As per the Nepal Rastra Bank Act, the Governor must recommend candidates for Deputy Governor from among senior executive-level officials. The number of recommended candidates must be double the number of vacant posts, and appointments are then made by the Council of Ministers.
Governor Bishwanath Poudel is required to forward the recommendations to the government through the Ministry of Finance. After assuming office, Finance Minister Swarnim Wagle held a meeting with Governor Poudel on Sunday. Although the Governor briefed the Minister on the country’s economic and financial situation, discussions on Deputy Governor appointments remained inconclusive.
Sources indicate that while the Governor did raise the issue, the Finance Minister suggested further discussions before making a decision. The Minister is reportedly preparing to evaluate the performance and capability of 18 Executive Directors competing for the posts, emphasizing merit-based appointments.
According to insiders, discussions between the Finance Minister and the Governor are expected to take place soon, after which recommendations may be submitted. Governor Poudel has already collected the biodata of all 18 Executive Directors and is said to be ready to recommend four candidates, as required.
Appointment process
Section 16 of the Nepal Rastra Bank Act governs the appointment of Deputy Governors. It states that the Council of Ministers appoints Deputy Governors based on the Governor’s recommendations. The Governor must propose twice the number of candidates as there are vacancies—meaning four names must be recommended for the current two vacant positions.
Once appointed, the individual is automatically considered retired from the bank’s service.
Operational impact
The absence of Deputy Governors has begun to affect the functioning of the central bank. Several committees chaired by Deputy Governors have been unable to hold meetings or make decisions. Employees say that processes such as staff promotions and regulatory committee decisions have been delayed.
However, some circulars and regulatory decisions were issued by the central bank before the new government was formed, even in the absence of a Deputy Governor leading the regulatory committee.
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