April 17: The board meeting of Nepal Rastra Bank (NRB) has become uncertain as the posts of half of the board members have become vacant due to various reasons. NRB Governor Maha Prasad Adhikari has been suspended while the terms of other two board members Dr Shree Ram Poudyal and Ramji Regmi have expired.

Governor Adhikari has been suspended since the government formed a probe committee on April 7 to investigate alleged irregularities of the governor. Meanwhile, the terms of Dr Poudyal and Regmi expired on Friday.

As per the Nepal Rastra Bank Act 2058, a board meeting of the central bank requires the presence of board chair and at least three board members. Due to the suspension of the governor and end of terms of two board members, the central bank currently has four board members. The central bank board meeting couldn’t be held after another board member and expert Dr Subodh Kumar Karna is unavailable to attend the meeting.

“Karna Sir hasn’t attended the board meeting ever since he was accused of financial irregularity,” said a high-ranking NRB official. “The board meeting cannot be held officially until he attends the meeting or other board members are appointed,” added the source requesting anonymity.

The source informed that the government is yet to take any action against Karna. 

The board meeting currently lacks quorum. Only Deputy Governor Dr Neelam Dhungana Timsina, Finance Secretary Madjhu Kumar Marasini and Deputy Governor Bam Bahadur Mishra are currently available to attend the meeting. There is a provision to have seven members in the board meeting.

As per section 14 of Nepal Rastra Bank Act, 2002, the Board of Nepal Rastra Bank (NRB) will comprise of seven members: four ex officio members – the Governor (who is the Chairman), the Secretary, Ministry of Finance and two Deputy Governors and three other Directors, each of whom are appointed from amongst the persons renowned in the field of Economics, Monetary, Banking, Finance and Commercial Laws.

It is mandatory for the presence of three board members including an expert to attend the board meeting of NRB chaired by the governor. Although the board meeting is held as per the need, there is a legal provision for holding such meeting at least once a month.

As the board meeting takes policy-level decision, it is essential to have the board meeting for the review of the monetary policy as well as to formulate policies for the upcoming monetary policy.