MP Dr. Kandel Proposes Fixed 5-Year Tenure for NRB Governor
CPN (UML) Member of Parliament **Dr. Pushpa Raj Kandel** has proposed establishing a fixed **5-year** tenure for the Governor of Nepal Rastra Bank. Speaking during discussions on the amendment bill for the 'Nepal Rastra Bank Act, 2058' in the Finance Committee, he advocated for enhancing central bank autonomy and direct parliamentary accountability.
KATHMANDU — CPN (UML) MP Dr. Pushpa Raj Kandel has proposed fixing the tenure of the Nepal Rastra Bank (NRB) Governor at 5 years to ensure central bank autonomy and policy stability. If a 5-year term is not feasible, he suggested setting a minimum tenure of 4 years.
Speaking at Wednesday's meeting of the Finance Committee during discussions on the amendment bill for the 'Nepal Rastra Bank Act, 2058', Dr. Kandel argued that the existing provision of an initial 3-year term extendable by 2 years undermines the Governor's independent decision-making capacity.
Highlighting international practices and central bank independence, Dr. Kandel emphasized the following key points:
- Governor's Tenure and Autonomy: Citing international norms where central bank governors serve terms between 4 to 8 years (such as up to 5 years in India), he noted that the Governor's tenure should be longer than political leadership cycles.
- Parliamentary Accountability: Rather than submitting the central bank's annual report solely to the Ministry of Finance, a mechanism should be established to make NRB directly accountable to Parliament.
- Coordination and Government Role: While supporting provisions such as the Finance Secretary sitting on the NRB Board and the government retaining directive authority for policy coordination, he stated that an uncertain 3-year tenure remains impractical.
Dr. Kandel urged the Finance Committee to establish clear guiding principles regarding whether to make the central bank fully autonomous, operate it on a coordinated basis, or keep it under Ministry control.