KATHMANDU: The appointment of a new governor for Nepal Rastra Bank (NRB) is facing prolonged delays, despite an agreement between coalition partners Nepali Congress (NC) and CPN-UML to pick Dr. Gunakar Bhatta, who recently resigned as NRB’s executive director, for the position.
However, the process has stalled because Acting Governor Dr. Nirmala Dhungana has yet to accept Dr Bhatta’s resignation. As per the existing law, the three-member committee tasked with recommending candidates must nominate experts from economics, monetary policy, banking, finance, commerce, management, or commercial law, including deputy governors, to the cabinet. It is unclear whether Dr Bhatta can be considered eligible for nomination. A writ petition questioning Dr Bhatta’s eligibility for the position, which is currently under consideration in the Supreme Court, has further complicated the process.
NRB sources say Dr Dhungana, who is also vying for the governor’s post, is deliberately withholding acceptance of Bhatta’s resignation. Notably, she has already accepted the resignation of another executive director, Prakash Kumar Shrestha.
Finance ministry sources claim that Dr Dhungana has even defied instructions from Deputy Prime Minister and Finance Minister Bishnu Paudel to approve Dr Bhatta’s resignation. A senior official at the Ministry of Finance told Himal Press that her refusal appears to be influenced by pressure from senior UML leaders, given that Dr Bhatta is NC’s preferred candidate.
Former Finance Minister and NC spokesperson Prakash Sharan Mahat criticized the delay, saying that leaving such a prestigious post vacant for too long undermines the government’s credibility. “A decision must be taken swiftly,” Mahat told Himal Press.
Finance Minister Paudel, however, said discussions are ongoing. “The government is serious about appointing a capable individual to navigate the current economic slowdown and financial challenges,” he said. “The delay is due to some technical issues.”
Regarding the controversy over Dr Bhatta’s resignation, Paudel added, “The resignation will be accepted soon, in line with legal procedures.”
As per Section 15 (3) of the Nepal Rastra Bank Act, 2001, a three-member committee—comprising the finance minister, a former NRB governor, and an expert—has to recommend three qualified candidates to the cabinet for appointment as the Governor.
Recommendation Committee Now Complete
The recommendation committee has now taken full shape.
A cabinet meeting held on Wednesday appointed former governor Maha Prasad Adhikari as a member of the recommendation committee.
He replaces former governor Dr Bijaya Nath Bhattarai, who resigned last week, stating that the committee remained inactive for a long time.
Economic expert Dr Bishwo Poudel is the third member of the committee.
