Lawmakers want to shrink the central bank governor’s term. Critics say that could open the door to political interference
Summary
Lawmakers are moving to shorten the Nepal Rastra Bank governor’s term from five years to three, with the Cabinet able to extend it by two more years based on performance. Former central bank leaders warn the change could weaken independence, invite political interference and hurt policy continuity.
Key Points
- The Finance Committee has proposed reducing the Nepal Rastra Bank governor, deputy governors and board members’ tenure from five years to three years, with a possible two-year extension.
- Former governors Yuba Raj Khatiwada and Vijaya Nath Bhattarai warned the change could undermine central bank stability and open the door to political interference.
- Committee chair Krishna Hari Budhathoki said the move is meant to link tenure to performance and strengthen the central bank.
- The amendment still needs approval from both the House of Representatives and the National Assembly before it becomes law.
