Himalayan News Service

Kathmandu, February 13:

Following the end of Dr Tilak Rawal’s tenure as governor of Nepal Rastra Bank (NRB), Bijay Nath Bhattarai, deputy governor of the central bank was appointed to the post of governor for the next term by the then Sher Bahadur Deuba coalition government.

Concurrently, two posts of deputy governors were left vacant.

No sooner was he appointed as the governor, than Bhattarai recommended the names of would-be deputy governors, violating Nepal Rastra Bank Act 2002 in relation to the appointment of deputy governor of the central bank, bank officials disclosed to The Himalayan Times.

As per the Act 2002, the government, the council of ministers, shall on the recommendation of the governor, appoint deputy governor. The incumbent governor has to abide by NRB Act 2002 Article 16 (2) clause, while recommending names for the vacant post, making double in the number of the post falling vacant from among the special class officers of the bank strictly on the basis of their ‘performance and capability.’

However, Bhattarai failed to work as per the Act, and recommended names for deputy governors’ post on his own, said bank officials on conditions of anonymity.

Last week, governor Bhattarai had recommended the names of Lekhnath Bhusal and Krishna Kumar Pradhan to the council of ministers through the Ministry of Finance. According to the NRB source, neither their names were recommended as per ‘seniority’ or ‘performance’.

The challenge before the central bank at present is to improve and strengthen the national financial system, expedite financial sector reforms and hire efficient senior bank officials. With the help of such officials, the governor should be able to implement policies, directives and suggest the finance minister effectively ways to maintain macro-economic stability.

If the central bank could not appoint deputy governors as per the Act, it will greatly affect financial sector reforms, which is being carried out by taking millions of dollars as loans from donors.