Kathmandu, November 4

The Nepal Rastra Bank (NRB) board today formed a three-member inquiry committee to probe allegations of misconduct by the central bank’s Deputy Governor Shiba Raj Shrestha. Following this, Shrestha also got suspended from his post at the central bank.

The committee led by NRB’s Board Director Sri Ram Poudyal has been tasked to submit a probe report on Shrestha within a month, informed a board member of NRB.

Following the direction from the Cabinet last week to probe Shrestha, the Ministry of Finance (MoF) had directed NRB to implement the Cabinet’s decision. The central bank had called for a board meeting today to form a probe committee to investigate the allegations against Shrestha.

Shrestha is facing the probe for ‘various misconducts’, including his involvement in jeopardising the country’s financial stability, promoting money laundering and taking facilities unlawfully during his foreign trips, among others.

“The government will take the necessary decisions based on the report submitted by the inquiry committee. But Shrestha will also be given the chance to present his clarifications,” said a source at the MoF.

Meanwhile, Shrestha has refuted all allegations against him. Talking to The Himalayan Times, Shrestha said, “All these allegations are aimed at tarnishing my credibility amid the race for the post of the governor.”

NRB Governor Chiranjibi Nepal is retiring after around five months and deputy governors are often the primary contenders for the post.

Similarly, Shrestha also said that all his decisions were based on law, and as per consultations with the NRB management and board members.

“Thus, if I was wrong in taking any decision, it also means that the entire NRB management and the board was wrong,” he said.

Following his suspension, Shrestha pledged to fully support the probe and urged for fair investigation on charges levelled at him.

Meanwhile, the first meeting of the inquiry committee which was held today afternoon decided to seek various related documents from Shrestha. Similarly, the meeting also decided to seek clarification from Shrestha on charges against him.