Kathmandu, September 16
The government has recently filed a proposal seeking an amendment to the Bank and Financial Institution Act, 2017. With the amendment, the government wants to introduce new criteria to become a member of the board of director of any bank and financial institution.
The government registered the amendment bill at the Federal Parliament Secretariat last week. It has proposed restrictive provisions in terms of academic qualification and experience to become bank operators. If the bill is endorsed as it is, many existing bank operators will not be able to continue their job.
Likewise, the bill has proposed that people who take loans from a bank crossing a set limit will also be barred from joining the banks’ board of directors. This provision intends to differentiate between bankers and businesspersons, according to an official at the Nepal Rastra Bank.
Based on a directive from Finance Minister Yuba Raj Khatiwada, the central bank had drafted the bill and forwarded it to the ministry. The Cabinet meeting had endorsed the document tabled by the ministry last week.
