Governor suspends central bank governor

 Kathmandu, Apr. 8

The government has suspended Governor of the Nepal Rastra Bank, Maha Prasad Adhikari.

A minister in a condition of anonymity confirmed the suspension of the governor of the central bank from his post with the initiation of an investigation on him.

According to the Ministry of Finance, a three-member committee led by a former judge of the Supreme Court is formed to look into the issue. The government had formed the inquiry committee as per the Nepal Rastra Bank Act, 2002. According to the law, an inquiry committee should be formed, and its recommendations were needed should the governor, deputy governor and member of the Board of Directors of the central bank.

Likewise, the inquiry committee should submit its recommendations along with its findings to the government within a month.

The governor, deputy governor and director shall be removed from the office if one lacks the capability to implement or cause to implement the functions which the bank has to carry out in order to achieve the objectives of the NRB, causes loss and damage to the banking and financial system of the country, or found to have acted dishonestly or with malafide intention in any transaction related to the business of the central bank.

Likewise, if professional license is revoked or prohibited from carrying out any profession rendering disqualified to be engaged in any trade or profession on the ground of gross misconduct, the governor would be removed from the office.

Deputy Governor Nilam Dhungana is appointed Acting Governor of the NRB.

Meanwhile, Finance Minister Janardan Sharma had shared a stage with Governor Adhikari on Friday morning at a conference organised by the NRB where the former had accused the governor of not providing appropriate suggestions to the government when needed. The central bank is the advisor of the government.

Of late, there were contradictions between the governor and finance minister about managing the economy, and especially the share market, which had confused the private sector.

Meanwhile, Adhikari said that he had not received the letter of his suspension till late night on Friday. He maintained that he will comment on the issue after receiving the letter. 

Published in The Rising Nepal daily on 9 April 2022.