NRB Governor, Deputy Governors and Directors’ Tenure Proposed to Be Limited to Three Years

The tenure of the Governor, Deputy Governors and Board Directors of Nepal Rastra Bank (NRB) is set to be reduced from five years to three years, following an agreement reached by the Federal Parliament’s Finance Committee.

The agreement was reached during discussions on the bill seeking to amend the Nepal Rastra Bank Act, 2058. Committee Chair Dr. Krishna Hari Budhathoki said the proposed amendment would limit the initial term of the Governor, Deputy Governors and Directors to three years.

Under the proposed provision, officials completing a three-year term could be reappointed for an additional two years based on a performance evaluation by the government. If reappointed, their total tenure could extend to a maximum of five years.

Currently, the Governor and Deputy Governors of Nepal Rastra Bank serve five-year terms. The Governor can be reappointed once, while there is no similar restriction on the reappointment of Board Directors.

If the amendment is endorsed by Parliament, the initial tenure would be limited to three years, with an additional two years possible only through reappointment based on performance.

The Finance Committee has also agreed to make the presence of at least one woman mandatory on the Nepal Rastra Bank Board of Directors.

Under the proposed arrangement, the NRB Board would consist of seven members, including at least one woman.

The proposed changes are part of broader amendments to the Nepal Rastra Bank Act concerning the tenure and reappointment of the Governor, Deputy Governors and Directors. The provisions will become legally effective only after the amendment bill is passed by Parliament.