Former Nepal Rastra Bank Governor Bijaya Nath Bhattarai resigned on Tuesday, April 22, from the committee formed to recommend a new candidate for the central bank's governorship, citing the committee’s lack of relevance and failure to convene.
The government had established the recommendation committee nearly a month ago, with Finance Minister Bishnu Paudel at the helm. Bhattarai, representing former governors, and Bishwo Paudel, serving as an expert member, were also part of the committee. However, the committee has yet to hold its first meeting.
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“There hasn't been a single meeting so far,” Bhattarai stated. “Given the committee’s inactivity and lack of purpose, I felt there was no reason to remain, so I decided to step down.”
The Nepal Rastra Bank Act mandates that the recommendation committee propose three candidates for the position of Governor. However, reports have emerged suggesting that the ruling coalition parties—Nepali Congress and CPN-UML—had already reached an agreement on who would be appointed as the next Governor before the committee could make any recommendations, raising concerns about the committee’s legitimacy and effectiveness.
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It has been reported that the ruling parties have agreed to appoint Dr. Gunakar Bhatta, who resigned as an Executive Director at Nepal Rastra Bank on April 18, as the next Governor. This move has sparked legal challenges, with a writ petition filed at the Supreme Court seeking to block Bhatta's potential appointment.
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The Act specifies that a new Governor must be appointed at least one month before the position becomes vacant under normal circumstances.
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According to the Act, the recommendation committee consists of the Finance Minister as chair, one former Governor, and one expert nominated by the government with expertise in economics, monetary policy, banking, finance, or commercial law. The committee is responsible for recommending three candidates from among Deputy Governors and other distinguished figures in relevant fields to the Cabinet, which then selects and appoints one.
