Nepal Initiates Selection Process for New Central Bank Governor: Qualifications and Potential Candidates

As the term of the current Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, approaches its conclusion on April 5, 2025, the Government of Nepal has initiated the process to appoint his successor. A recommendation committee, led by the Finance Minister, has been established to propose suitable candidates for the central bank's top position.​

Selection Process

According to the Nepal Rastra Bank Act, 2058 (2002), the recommendation committee comprises:​

• Chairperson: The Finance Minister​

• Members:

  • A former NRB Governor​
  • A distinguished individual from sectors such as economics, monetary policy, banking, finance, commerce, management, or commercial law, appointed by the Government of Nepal​

This committee is responsible for recommending three candidates for the Governor's position, with at least one nominee being a current Deputy Governor of NRB.

Qualifications for the Governor Position

Per Section 20 of the Nepal Rastra Bank Act, 2058, candidates must meet the following criteria:​

• Citizenship: Must be a Nepalese citizen​

• Moral Character: Should possess a high moral character​

• Educational Background: Must hold at least a master's degree in fields such as economics, monetary policy, banking, finance, commerce, management, public administration, statistics, mathematics, or law

• Professional Experience: Should have a minimum of 10 years of work experience in relevant sectors​

Potential Candidates

Several individuals are emerging as potential candidates for the Governor position:​

• Dr. Neelam Dhungana Timsina: Appointed as Senior Deputy Governor on March 9, 2021, Dr. Timsina has over 27 years of experience in Nepal's economic and banking sectors. She has been instrumental in driving transformative changes and currently serves as a Board member of the Social Security Fund of Nepal.

• Mr. Bam Bahadur Mishra: Also appointed as Deputy Governor on March 9, 2021, Mr. Mishra has been actively involved in NRB's operations and is considered a strong contender for the Governor role. ​

• Mr. Sushil Bhatta: The former CEO of the Nepal Investment Board, Mr. Bhatta has extensive experience and enjoys support from major political parties, industrialists, business figures, and the international community. His innovative approach is viewed as a valuable asset in the current economic climate. 

Responsibilities of the Governor

The Governor of NRB holds significant responsibilities, including:

• Implementing decisions made by the Board of Directors​

• Managing the bank's operations and administration​.

• Representing NRB in international forums and organizations​.

• Executing monetary and foreign exchange policies​.

• Formulating policies related to interest rates, liquidity, and mandatory reserves for commercial banks and financial institutions​

The governor's role is pivotal in maintaining the stability and integrity of Nepal's financial system.​

The recommendation committee will evaluate potential candidates based on the stipulated qualifications and their professional contributions to Nepal's financial sector. After thorough deliberation, the committee will submit a list of three nominees to the Council of Ministers, which will then appoint the new Governor.​

The appointment of a new governor is a critical decision that will influence the direction of Nepal's monetary policy and financial stability in the coming years.