Strict code of conduct for NRB supervisors

KATHMANDU, NOV 28 - 2013

Nepal Rastra Bank (NRB) has put in place stringent code of conduct for its employees assigned to supervise banks and financial institutions (BFIs).

In the “NRB Monitoring and Supervision Bylaw 2070”, the central bank has barred the supervisors from purchasing shares of BFIs from the secondary market, participating in feasts other than public events, and using their vehicles, taking loans at concessional rates, and accept presents.

The bylaw states if a supervisor or his/her family members have promoters’ shares or more than 1 percent share in a BFI, or if the supervisor’s family members hold the post of director, chief executive officer, senior official or business partner, the supervisor has to inform in written to the department chief.



NRB Spokesperson Bhaskarmani Gnawali said the code of conduct was implemented as the supervisors are assigned for a “special job” that requires integrity. “The move is aimed at making the central bank more accountable and discourage the misuse of power,” he said.

The central bank also said while contacting BFI customers, the supervisors will have to do so in presence of officials of the BFI concerned.

Source: The Kathmandu Post