NRB implements 6 months cooling period for Deputy CEOs of commercial banks; Adopts flexibility for crisis-ridden institutions

Nepal Rastra Bank has implemented cooling period for the position of Deputy CEO’s of the commercial banks. Rastra Bank has issued direction that the second officers of the commercial banks will not be eligible to be appointed in the same position of another bank before 6 months elapses.

Similarly, a director, due to any reason resigns from his position will not be allowed to be appointed in the same position within the tenure period.

In the new circular issued, Rastra Bank has also adopted flexibility in case of the crisis-ridden institutions. Different premium rates should be determined according to the type of loan and payment duration and interest rates should be determined on the same basis and should be published in a quarterly basis. Published premium rate can be changed on semi annual basis. The crisis ridden institutions can avail the facility upto 2 years of being removed as a crisis ridden institution.