Nepal Rastra Bank Leadership Marred by Conflict of Interest: Lawmaker

Nepal Communist Party (NCP) lawmaker Parshuram Tamang has stated that the trend of high-ranking officials at Nepal Rastra Bank (NRB) joining private banks after retirement and then returning to leadership positions at the central bank has increased.

This practice, according to Tamang, has created a conflict of interest. He raised this issue during a discussion on the bill to amend the Nepal Rastra Bank Act, 2058, at the parliamentary Finance Committee.

Tamang emphasized the need for clear provisions to address this issue when amending the NRB Act. He also mentioned that some banks were established with the involvement of NRB employees, which has been a topic of discussion in the market.

He pointed out that many high-ranking officials at NRB join private banks after retirement and then try to return to the governing body of the central bank. Tamang questioned how this conflict of interest arose and stressed the need to find a solution through legal means.

He stated, ‘Here, most of the time, high-ranking officials at NRB join private banks after retirement, and then they try to return to the governing body of the central bank. Where did this conflict of interest come from?’

Tamang added, ‘When amending the NRB Act, we need to pay attention to this. There are issues of conflict of interest here. What are they? How will we address them? We need to focus more on these aspects.’

Tamang also mentioned that the recent monetary policy announced by NRB did not meet expectations. He emphasized the need to make the monetary policy formulation process more autonomous.

He suggested that, along with the institutional autonomy of NRB, the monetary policy should be prepared through a separate committee.