Kathmandu, January 18

The Parliamentary Committee on Finance today formed a seven-member sub-committee to settle outstanding issues related to the Bank and Financial Institution (BAFI) Bill tabled in Parliament.

The seven members of the sub-committee comprise Uday Shumsher Rana, Ichchha Raj Tamang, Goma Kuwar, Dipak Kuikel, Gopal Dahit, Bimal Kedia and Kedar Sanjel. These lawmakers have been asked to choose a coordinator and frame a work plan on their own.

“The sub-committee should submit a report within 15 days,” Finance Committee Chairman Praksah Jwala said.

Different lawmakers have sought amendments to 32 different clauses of the BAFI Bill, which will replace Bank and Financial Institution Act 2063BS.

Speaking during today’s parliamentary committee meeting, Tamang, who is also chairman of Civil Bank, severely criticised the provision incorporated in BAFI Bill that aims to tighten the noose around board of directors of banks and financial institutions (BFIs).

If the Bill turns into law, chairman and members of the board of directors of BFIs won’t be able to serve in their positions for more than two terms of four years each.

“This provision is against democratic norms,” Tamang said.

His call was supported by Rana. “It is obvious for investors to protect their investment. So, there should not be limitations on appointment of chairman and board directors.”

Tamang also spoke against the provision in the Bill that has institutionalised the practice of appointing the CEO of BFIs for a maximum of two terms of four years each.

Other lawmakers, including Chudamani Jangali and Pema Lama, criticised the move to limit presence of only one trade union in BFIs. Clause 126 (1) of the Bill says employees can only establish one trade union upon getting permission from the concerned authority.

“This violates basic rights of workers to establish up to four trade unions by mobilising support of at least 25 per cent of the employees,” Jangali said.