KATHMANDU: The report of the committee on the bill designed to amend the Nepal Rastra Bank Act, 2058 BS has been unanimously endorsed.

The meeting of the Finance Committee held on Wednesday unanimously passed the report prepared by the committee. Finance Committee Secretary Laxman Aryal said that the report of the committee related to the bill was passed unanimously.

On the occasion, Finance Committee Chair Dr Krishna Hari Budhathoki said the report was prepared after holding clause-wise discussions on the basis of suggestions and suggestions received from the committee members.

The committee meeting also focused on whether the report was prepared on the basis of the decisions taken by the committee meeting and whether other issues were included except the decision. Aryal said that the committee members can record further suggestions and opinions in writing in the Finance Committee Secretariat if they feel necessary.

The committee has made some important amendments in this bill, in which the objectives of the Nepal Rastra Bank have been made clear and concise. The tenure of the Governor, Deputy Governor and Board of Directors has been reduced from the current five years to three years and they can be reappointed for two years on the basis of performance.

Similarly, the qualifications and experience of the Governor, Deputy Governor and Independent Board of Directors have been made timely and it has been made mandatory to appoint at least one woman as an independent board member. In view of the conflict of interest, the incumbent office bearer of a commercial bank and financial institution or the Chief Executive Officer who has not completed two years after retiring from such post will be ineligible to become a member of the board and a person holding more than 0.five percent shares in a commercial bank and financial institution will be ineligible to become a member of the director.

The Nepal Rastra Bank (NRB) has fixed the date for the formulation of the monetary policy, its announcement and publication on the 1st day of the month of July every year. Similarly, the provision of Section 106C of the Act which allows the Government of Nepal to give directives regarding currency, banking and finance has been retained. In addition, the Honorable Minister of the Government of Nepal has been directed to immediately initiate the necessary amendment process in Section 18 of the Bank and Financial Institutions Act, 2073 to address the problems arising out of the punishment provision mentioned in sub-section (2) (a) of Section 100 of the Nepal Rastra Bank Act.

Today’s meeting of the committee said: 1. The monetary policy should be issued on July 17 every year 2. The scope of the NRB to be increased to regulate and supervise the Citizen Investment Fund, Employees Provident Fund and Social Security Fund 3. The NRB Management Committee meeting should be held at least twice a month.