Himal Press 
KATHMANDU: The Finance Committee of the House of Representatives has reached a consensus on the governance structure of the Nepal Rastra Bank (NRB), finalizing a seven-member board of directors with at least one seat reserved for women.
The agreement was reached during a clause-by-clause discussion on the Bill to amend the Nepal Rastra Bank Act, 2002 on Tuesday. Although the proposed amendment had sought to expand the board to nine members, the committee decided to retain the existing seven-member structure.
As per the structure approved by the Finance Committee, the NRB Board of Directors will be chaired by the Governor. Similarly, it will have the Finance Secretary and two deputy governors as members and three independent members, including a woman.
During the meeting, Minister for Finance Dr Swarnim Wagle said that while greater diversity within the institution would be beneficial, increasing the number of board members could raise the risk of conflicts among individuals.
He also argued that the provision allowing the government to issue direct instructions to the central bank should be removed from the bill. Wagle added that the finance secretary must sit on the central bank’s board to ensure coordination between the government and the monetary authority.
Wagle said board members should be required to possess high moral character and at least a master’s degree. He also emphasized that the definition of work experience should remain flexible and practical rather than overly restrictive. “As a specialized institution, the central bank should not become a platform for nepotism or politically motivated appointments,” he added.
According to the finance ministry, the Bill has been drafted to amend the Nepal Rastra Bank Act to further strengthen the country’s monetary and financial system, enhance its credibility, and ensure it remains responsive to changing needs.
