SC issues show cause notice to Public Service Commission

Kathmandu, January 2

The Supreme Court has issued a show cause notice on the decision made by the Public Service Commission (PSC) to reject the proposal of Nepal Rastra Bank (NRB) to remove the 30-year service period provision from its employees’ bylaws.

PSC had rejected the proposal of NRB to remove the 30-year service provision from the NRB Employees’ Bylaws on November 13.

Earlier, the central bank had proposed removing the 30-year service period provision citing that a large number of high-ranking officials would retire in 2018 under this provision and it wanted to bring uniformity in retirement provision at par with civil servants working in other state bodies.

However, PSC rejected the proposal and suggested NRB to keep the proposal on hold until Federal Public Commission Act is implemented.

After initial hearing on the case filed by Narayan Prasad Subedi, chairman of Financial Institution Employees Union, against the decision of PSC regarding NRB’s proposal, apex court issued show cause notice today.

A single bench of Justice Deepak Kumar Karki ordered the defendant — PSC — to submit a reply in writing within 15 days.

NRB had sent its proposal to PSC on September 25 citing decision of its board of directors to remove provision related to retirement of employees mentioned in NRB Employees’ Bylaws.

Earlier, board of directors of the central bank had decided to retain a single provision regarding retirement of its employees at the age of 58. As per the existing employees’ bylaws, NRB employees retire either on the basis of having reached 58 years of age or after completing 30 years of service, whichever comes first.