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Nepal Rastra Bank Act, 2058 (2002)

On what conditions or grounds the Government of Nepal can remove the governor, deputy governor and director from the office?



Since, the Government of Nepal is the higher authority of nation it is responsible for all the actions carried by the personnel of its operating under its name. So, solely Government of Nepal is authorized center to dismiss the tenure of any civil servant. In case of governor, deputy governor and director removal from office it has made a provision in NRB Act 2058 under section 22.

The sub-section (1) under section 22 says, government of Nepal, the council of Ministers shall remove the governor, deputy governor and director on conditions stipulated under sub-section (5). Provided that government of Nepal, shall not deprive the concerned person from a reasonable opportunity to defend himself/herself prior to remove him/her from his/her office.

Now, lets see in sub-section (5) of this section.


(Source of image is internet)

The governor, deputy governor and director shall be removed from the office on any of the following grounds:

(a) If one is disqualified to be become a director pursuant to section 21; or
(b) The lack of capability to implement or cause to implement the functions which the bank has to carry out in order to achieve the objectives of the bank under this Act; or
(c) If one has committed any act causing loss and damage to the banking and financial system of the country; or
(d) If one is found to have acted dishonestly or with mala fide  intention in any transaction related to the business of the bank; or
(e) If professional license is revoked or prohibited from carrying out any profession rendering disqualified to be engaged in any trade or profession on the ground or gross misconduct; or
(f) If one is absent for more than three consecutive meeting of board without genuine reason.

But, there is also a provision in sub-section (6) that, except on the grounds referred to in sub-section (5), no governor, deputy governor and director shall be removed from office.


Happy reading!



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