MP Kandell: Two Deputy Governors Sufficient for Nepal Rastra Bank

Kathmandu. CPN (UML) MP Prof. Dr. Pushparaj Kandell has stated that two Deputy Governors are sufficient for Nepal Rastra Bank. While discussing the bill to amend the Nepal Rastra Bank Act, 2058 BS in the Finance Committee under the House of Representatives, he said that the central bank does not need many Deputy Governors.

He also questioned why the private sector needs so many Deputy Governors. Bankers present at the meeting had proposed increasing the number of Deputy Governors from two to three.

MP Kandell mentioned that the current two Deputy Governors are sufficient and suggested that if representation from the external sector is deemed necessary, one could be appointed from within the Rastra Bank and another from outside. He also raised concerns about the lack of female representation on the Rastra Bank's board during the meeting.

He stated that the government has made provisions for at least one woman to be on the boards of public bodies, and expressed sadness that there are no women members on the Rastra Bank's board and that the amendment bill also lacks such a provision.

He said, ‘The Rastra Bank issued a circular stating a minimum of one woman on the boards of all banks, and arrangements have been made accordingly. But again, there are no women on the Rastra Bank's own board, and this provision is also missing in the bill. Secondly, why do the friends from the private sector need three Governors when two are not enough? What is the logic for adding more? Two are sufficient, and arrangements can be made to appoint one from the external sector as well.’

He further added, ‘One from the Rastra Bank and one from outside would suffice. Regarding cooperatives, we have already decided to form a separate authority for cooperatives. Its work is also underway; it should be strengthened, and the cooperatives should be kept out of the Rastra Bank's purview. We should have looked into it earlier; the Rastra Bank stayed away, saying it did not have the capacity.’

MP Kandell emphasized the need to separate the cooperative sector from the Rastra Bank's purview, noting that the process of forming a separate authority for cooperative regulation is already underway. He recalled that in the past, when demands arose to regulate the cooperative sector, the Rastra Bank declined to take responsibility, citing insufficient capacity. He stated that it would not be appropriate to give the Rastra Bank the same responsibility again, as the process of forming a separate authority is progressing in the wake of the cooperative crisis.