NRB to set retirement age limit to 58 years

Kathmandu, Aug. 16: The Nepal Rastra Bank (NRB) is amending its by-laws to limit the retirement age of its employees to 58 years.

According to the existing provisions, the NRB staff get a compulsory retirement after they complete 30 years in service, irrespective of whether they have reached the age limit. In other government organisations, employees can remain in service for more than 30 years if they are below the age of 58 years.

Now, the banking sector regulator has expedited the process to amend its by-laws in accordance with the rule of the Public Service Commission (PSC) and with an aim to reduce its economic burden.

It said that the by-laws were being amended as per the direction of the PSC to maintain uniformity in the perks and benefits to the employees of the government and semi-government organisations.

The PSC had sent a letter to the central bank about a month ago asking the latter to amend the the by-laws relating to the services of its employees and submit the new provisions to the PSC.

A commission led by the Director of the NRB Board, Ramjee Regmi, had recommended applying 58 years' tenure system by amending the current by-laws.

Similarly, a committee formed about three years ago and coordinated by former Director of the central bank Dr. Parthibeshwar Prasad Timalsina had also suggested implementing one-door system.

“The committee had conducted a survey to reach a conclusion and recommended a review of the current retirement system,” a NRB document reads.

Likewise, another study report submitted by the Staff College had concluded that due to the 30-year tenure system, the central bank was losing at least 5 years of service of its competitive professionals and had to bear a huge economic burden.

According to an Executive Director of the NRB, any employee who joined the central bank before 1992 and was retiring after completing 30 years in office are entitled to the pension in line with the staff who retire at the age of 60.

As 203 employees of various levels are retiring within one and a half years from now due to the existing laws, the NRB will have to bear about Rs. 160 million additional cost per year to manage their pensions and other benefits.

Currently, the NRB has 1,125 employees, and more than 2,500 are drawing their pension.