Parliamentary Committee Amends Central Bank Act for Governor and Director Qualifications
Summary
The Finance Committee of the Federal Parliament has advanced amendments to the Nepal Rastra Bank Act, proposing stricter qualification rules, work experience requirements and a cooling-off period for central bank governor and director appointments. Lawmakers also discussed lowering the shareholding threshold for potential conflicts of interest and clarifying the powers of the governor and board of directors.
Key Points
- The Finance Committee of the Federal Parliament is amending the Nepal Rastra Bank Act to define qualifications and experience for the governor and directors.
- The draft requires at least a postgraduate degree and specific executive experience, with alternative provisions for PhD holders.
- Lawmakers agreed to impose a cooling-off period for current and former chiefs of A-class commercial banks to reduce conflict of interest.
- The committee also proposed lowering the shareholding limit from 1 percent to 0.5 percent and refining unclear terms in the bill.
