Banking News / It has now been a full month since the leadership post at Nepal Rastra Bank (NRB) became vacant, yet the government has failed to appoint a new Governor. Following the conclusion of Governor Maha Prasad Adhikari’s term on Chaitra 24 (April 6), the central bank has been operating under the stewardship of Acting Governor and Deputy Governor Dr. Neelam Dhungana Timsina.
The much-anticipated appointment, expected by last Thursday, did not materialize despite a reported promise by Prime Minister KP Sharma Oli to Nepali Congress President Sher Bahadur Deuba that the position would be filled by then. A cabinet meeting held on the same day was widely expected to formalize the appointment. However, the process took an unexpected turn when consensus faltered, and the appointment was once again deferred.
Political Tug-of-War Over Bhatta’s Resignation
Initially, both the CPN-UML and Nepali Congress were said to have reached an understanding to nominate Dr. Gunakar Bhatta, a Congress-affiliated economist and Executive Director at NRB, as Governor. However, a major procedural roadblock emerged when Acting Governor Dr. Dhungana refused to accept Bhatta’s resignation—a prerequisite for his nomination.
Despite repeated meetings between Deuba and Prime Minister Oli, and efforts by Finance Minister Bishnu Poudel to mediate, Dhungana has remained firm in her refusal to accept the resignation. As a result, Bhatta’s candidacy stalled, prompting the Congress to propose an alternative: Dr. Bishwo Paudel, an economist and member of the Governor Recommendation Committee.
Following a fresh round of high-level discussions between Deuba and Oli at Baluwatar on Saturday, both leaders reportedly agreed to nominate Dr. Paudel as the next Governor. In line with this decision, Poudel submitted his resignation from the Recommendation Committee on Sunday (Baisakh 28).
Chronology of Key Events in the Governor Appoinment
- Falgun 27: The Ministry of Finance amends criteria for appointments to public institutions, removing the age limit of 65 for Governor appointments—reportedly under pressure from vested interest groups.
- Chaitra 29: A writ petition is filed at the Supreme Court challenging the removal of the age limit.
- Baisakh 3 : The Supreme Court issues a show cause order to the government, effectively reinstating the age cap.
- Chaitra 5–15: Governor Maha Prasad Adhikari is placed on mandatory leave.
- Chaitra 11 : A Governor Recommendation Committee is formed, headed by Finance Minister Bishnu Prasad Poudel, with former Governors Vijaya Nath Bhattarai and Dr. Bishwo Nath Poudel as members.
- Chaitra 22 : Farewell is bid to outgoing Governor Maha Prasad Adhikari.
- Chaitra 25 : Deputy Governor Dr. Neelam Dhungana assumes responsibility as Acting Governor.
- Baishakh 3: Public confirmation emerges that PM Oli and NC President Deuba have agreed to appoint a new Governor soon.
- Baishakh 5: Dr. Gunakar Bhatta submits his resignation as Executive Director.
- Baisakh 9: Committee member Vijaya Nath Bhattarai resigns, citing the committee’s inaction.
- Baisakh 11 : Oli and Deuba meet again for an hour-long discussion on the appointment.
- Baisakh 17 : Former Governor Maha Prasad Adhikari is appointed to the committee.
- Baisakh 16: A writ is filed in the Supreme Court against Adhikari’s appointment to the committee.
- Baisakh 16: Dr. Bishwo Nath Poudel resigns from the recommendation committee.
- Baisakh 28: Following a political agreement, Dr. Bishwo Poudel resigns from the committee to be nominated as Governor.
Wave of Resignations from Governor Hopefuls
Since the Governor’s position became vacant, numerous aspirants have preemptively resigned from their current positions in a bid to qualify:
Dr. Prakash Kumar Shrestha, Executive Director at NRB and also a member of the National Planning Commission, resigned on Falgun 18 (February 18). His resignation only came to light weeks later, during Chaitra.
Gyanendra Dhungana, CEO of Nabil Bank, tendered his resignation effective from Chaitra 20 —four days before the Governor’s post fell vacant.
Dr. Gunakar Bhatta submitted his resignation on Baisakh 5 but has been caught in a stalemate due to Acting Governor Dhungana’s non-acceptance.
Vijayanath Bhattarai, a member of the Governor Recommendation Committee, resigned on Baisakh 9, citing delays in convening meetings.
With Bhatta’s candidacy stalled, Nepali Congress pushed for Dr. Bishwo Paudel, who resigned from the committee on Baisakh 28 .
What Comes Next?
With multiple resignations from the Governor Recommendation Committee, the government must now reconstitute the committee before any further action. Only after this can three recommended names be forwarded to the Council of Ministers for final selection.
As the central bank continues to function without permanent leadership—and amid economic challenges requiring steady monetary oversight—this prolonged delay not only hampers policy making but also raises concerns about the erosion of institutional autonomy in Nepal’s financial system.
