Former Finance Minister Yuba Raj Khatiwada Accuses Government of Weakening Nepal Rastra Bank Autonomy
Summary
Former Finance Minister Yuba Raj Khatiwada has accused the government of weakening Nepal Rastra Bank’s autonomy by changing the law and reducing the governor’s tenure. He warned that regulatory interference, weak investment sentiment, and failure to exit the Grey List could hurt Nepal’s banking system and economy.
Key Points
- Yuba Raj Khatiwada said the government is trying to weaken Nepal Rastra Bank’s autonomy by shortening the governor’s tenure through legal changes.
- He argued that regulatory bodies and investigative agencies should not interfere in the central bank’s work and sensitive banking information.
- Khatiwada said Nepal’s banking system is stable but credit expansion is constrained by low investor confidence and pressure on collateral-based lending.
- He warned that failing to leave the Grey List could seriously damage banking, trade, and capital flows in Nepal.
