New Twist in Governor Appointment: Age Limit Removed, Controversy Erupts

As the process to appoint the governor of Nepal Rastra Bank (NRB) continues, the Ministry of Finance has introduced a surprising change. The ministry has amended the criteria for appointing officials to public entities, scrapping the age limit previously set for the governor’s position. Sources say this decision was made on February 27 and was officially announced on Monday.

Earlier, the eligibility criteria required candidates to be between 30 and 65 years old to become the governor. With this restriction lifted, individuals over 65 are now eligible, sparking speculation that Dr. Ravindra Pandey or former Chief Secretary Rajendra Kishore Chhetri could be appointed to the role.

The ruling Nepali Congress and CPN (UML) have prepared their own lists of candidates. Congress has reportedly put forward names like Gyanendra Dhungana, Gunakar Bhatt, Kewal Bhandari, and Ravindra Pandey, while UML is said to favor Nilam Dhungana Timsina, Prakash Shrestha, Bam Bahadur Mishra, and Ashok Sherchan. However, Congress President Sher Bahadur Deuba is allegedly pushing for Chhetri, a move critics claim is influenced by vested interest groups.

With Nepal’s economy weakening and public frustration growing, there is a strong call for an expert and capable leader to helm the central bank. Yet, accusations are rife that the ruling coalition is attempting to install an unqualified individual under political pressure. Economists warn that such an appointment could have disastrous long-term effects on economic stability.

The government has formed a recommendation committee led by Finance Minister Bishnu Prasad Paudel, with former governor Bijaya Nath Bhattarai and economist Dr. Bishwa Poudel as members. This committee will propose three names, one of whom will be appointed governor by the Council of Ministers. However, as of Monday, no consensus has been reached between the coalition partners.

Initially, Deuba appeared to back Pandey, a member of NRB’s board of directors. But recent developments suggest a shift toward Chhetri, whose past is mired in controversy. Chhetri briefly served as Chief Secretary for three months in 2017 and faced allegations of misusing political influence during his tenure as Energy Secretary. Meanwhile, Prime Minister’s economic advisor Dr. Yubaraj Khatiwada is said to oppose Pandey’s candidacy.

The amended criteria will apply not only to the governor but also to 15 other entities under the Finance Ministry. Many suspect the removal of the age limit is designed to favor specific individuals. While the ministry claims this is a routine adjustment, the timing and implications have raised eyebrows.

Efforts to finalize the governor’s appointment during Monday’s cabinet meeting failed due to a lack of agreement among coalition partners. With the economy at a critical juncture, the question of who will lead Nepal Rastra Bank has become a matter of widespread concern. Fears are mounting that a politically motivated appointment could jeopardize the country’s financial future.