While the governance of the country continues under 'normal' circumstances, the appointment of the new Governor of the Central Bank has turned out to be rather 'unusual'.

Due to political interference and disputes over party allocations, the appointment was made only after a delay of 1 month and 13 days following the vacancy of the Governor's post. On Tuesday, May 20, 2025, the Cabinet appointed Prof. Dr. Bishwanath Paudel as the 18th Governor, according to the Government Spokesperson and Minister for Communication and Information Technology, Prithvi Subba Gurung.

Earlier on the same day, the Governor Recommendation Committee led by Finance Minister Bishnu Paudel had shortlisted Dr. Bishwanath Paudel, Acting Governor Dr. Neelam Dhungana Timilsina, and former Secretary Dinesh Bhattarai. However, it was just a formality as Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba had reached a consensus to appoint Paudel as the Governor.

On 24 March 2025, when the Governor Recommendation Committee was formed under Finance Minister Paudel’s chairmanship, Dr. Paudel was nominated as an expert member. When the Nepali Congress proposed his name for the governorship, he resigned from the committee on May 10, 2025.

Earlier, the Nepali Congress had proposed Dr. Gunakar Bhatta, Executive Director at Nepal Rastra Bank, for the position. However, after Acting Governor Timilsina did not approve Dr. Bhatta’s resignation from his post, the Congress proposed Dr. Paudel as an alternative.

Dr. Paudel had previously served as Vice-Chairman of the National Planning Commission under Prime Minister Deuba and as Senior Economic Adviser at the Ministry of Finance during the tenure of Finance Minister Dr. Prakash Sharan Mahat.

Dr. Paudel was the Nepali Congress candidate for Chitwan-1 in the 2022 parliamentary elections (2079 BS) but was defeated by Rastriya Swatantra Party candidate Hari Dhakal. A writ petition claiming Dr. Paudel was ineligible for the governorship due to political involvement was dismissed by the Supreme Court on May 20, 2025, clearing the way for his appointment.

Legal Challenges and Political Tug-of-War

As per the Nepal Rastra Bank Act, under normal circumstances, the government must appoint a new Governor at least one month prior to the end of the sitting Governor’s term. Section 25 of the Act states that: “The Government of Nepal shall appoint the Governor, generally at least one month before the expiry of the current Governor’s term, and publicly publish the appointment.”

However, due to unresolved political power-sharing issues, the recommendation committee could not even hold a single meeting. Eventually, the committee underwent reshuffle twice.

Initially, the committee included Finance Minister Bishnu Paudel as Chair, former Governor Bijay Nath Bhattarai, and expert member Dr. Bishwanath Paudel. As no meeting took place for an extended period, member Bhattarai resigned on April 21, 2025, citing that the committee was being reduced to a rubber stamp, as the appointment was predetermined through political consensus.

Subsequently, on April 30, 2025, the government appointed outgoing Governor Maha Prasad Adhikari in Bhattarai’s place. A writ petition challenging Adhikari's eligibility is still pending in the Supreme Court.

Dr. Paudel’s Introduction

Known as a young economist, Dr. Paudel holds a PhD in Agricultural and Resource Economics from the University of California. He has experience working both domestically and with international donor agencies. He has served as Vice-Chairman of the National Planning Commission and as Economic Adviser at the Ministry of Finance. Additionally, he has been a Visiting Associate Professor at Kathmandu University School of Management (KUSOM).

Dr. Paudel has also served as an adviser to the Millennium Challenge Corporation (MCC) Nepal and the International Labour Organization (ILO), a board trustee of Ullen’s Education Foundation, and a board member of Sanima Middle Tamor Hydropower and Sanima Bank.

“NRB is Not a Political Platform”

Following his appointment, newly-appointed Governor Dr. Bishwanath Paudel told New Business Age that the Nepal Rastra Bank is a strong regulatory body and he would work to enhance its credibility. He clarified that he did not seek favour from anyone to get appointed and that the central bank is not a place for politics.

“The NRB is an independent regulatory body. There is no room for politics within it,” he said. “Just because I once contested elections doesn’t make me a political party worker.” He added that he would focus more on supervision than just regulation of banks and financial institutions, and that efforts would be made—together with the government—to remove Nepal from the FATF grey list.

 

Chief Justice Raut Administers Oath of Office to New NRB Governor

Chief Justice Prakashman Singh Raut on Wednesday administered the oath of office and secrecy to newly appointed Governor of the Nepal Rastra Bank (NRB), Dr Bisjwanath Poudel.

According to RSS, CJ Raut administered the oath to economist Dr Poudel amid a ceremony held at the Supreme Court on Wednesday.