10 days to appoint deputy governors

Kathmandu, December 14

The government has exactly 10 days to appoint two new deputy governors of Nepal Rastra Bank (NRB), the central bank, as these posts will become vacant after that period.

Gopal Prasad Kaphle and Maha Prasad Adhikari, the two incumbent deputy governors of NRB, are retiring at the end of next week following completion of their tenure. The two were appointed for a period of five years on December 26, 2010.

As per the NRB Act 2002, the governor has to recommend names of four special class officers — executive directors — for the post of deputy governors to the government. The Cabinet will then pick up two names, who will be appointed as deputy governors. NRB currently has 16 executive directors.

“It is essential to appoint qualified people to the posts of deputy governor because they work as advisors to the governor,” a senior NRB official said on condition of anonymity. “Also, deputy governors are members of NRB’s board of directors and play a crucial role in formulation of monetary policy and other policies to ensure price and fiscal stability.”

The two deputy governors of the central bank look after macroeconomic and banking sectors, respectively.

The deputy governor entrusted with the task of looking into macroeconomic sector has to devise plans to keep consumer prices at manageable level to ensure price stability. The other deputy governor, on the other hand, has to keep an eye on performance of banks and financial institutions to ensure financial stability in the country.

In 2010, 10 out of 12 executive directors of NRB had expressed dissatisfaction over selection of deputy governors. They had even boycotted the swearing-in ceremony of deputy governors.