Banking News – After the parliamentary Finance Committee proposed reducing the tenure, the Governor and Deputy Governors of Nepal Rastra Bank have been attempting to act arbitrarily, violating accounting standards.

Governor Dr. Vishwa Poudel and Deputy Governors Kiran Pandit and Dirgha Bahadur Rawal have sought to amend the regulations to prevent the reduction of their benefits, leading to a dispute in the bank’s Board of Directors meeting.

The Finance Committee has proposed reducing the tenure of the Governor, Deputy Governors, and Directors through an amendment to the Nepal Rastra Bank Act Bill. The existing Act provides for a 5-year tenure. The Finance Committee has proposed reducing it to 3 years. The committee’s proposal is yet to be passed by parliament.

The Governor and Deputy Governors of Rastra Bank receive vehicles worth approximately Rs 1 crore 70 lakh to Rs 1 crore 80 lakh. The depreciation of these vehicles reaches zero in 5 years. They have the facility to take the vehicle home after completing the five-year tenure by paying 20 percent of the purchase price.

When the bill is passed, the depreciation of the vehicle will be calculated for only 3 years. In that case, if they have to take home the vehicle provided by Rastra Bank, it will be expensive for them.

To avoid this, they have been making efforts to have a decision passed contrary to the principle of depreciation. The Governor’s Office’s proposal to have the depreciation completed in three years was met with heated debate in the Board of Directors meeting.

According to sources, Governor Poudel insisted on making a decision, arguing that the old arrangement should be made practical. However, Director Chintamani Shivakoti took a firm stance that a decision cannot be made to suit the interests of the Governor and Deputy Governors.

According to sources, the minutes of the last Board of Directors meeting could not be prepared due to the Governor’s desire to make a decision at any cost and Shivakoti’s firm stance that it was not acceptable under any circumstances.

“In the meeting, the Governor said the arrangement for depreciation of the vehicle that can be taken home should be changed. But Chintamani sir did not agree. There was a good debate between the two for some time. Then the Finance Secretary asked the Governor whether a decision had to be made. The Governor tried to have a decision passed, saying some arrangements should be made practical and we should not be rigid. But since Chintamani sir did not agree, the meeting’s minutes have not been prepared,” the source said.

Currently, there is an arrangement where the value of the vehicle becomes zero in 5 years. The Governor and Deputy Governors take home the vehicle they rode while in office after 5 years. To take it home, they initially have to pay 20 percent of the purchase price.

However, Governor Poudel wants the depreciation to be calculated in three years and the vehicle’s valuation to be made zero. “The Governor and Deputy Governors will now not have to pay 20 percent as before to take home the vehicle they are currently riding. It is being reduced by half to 10 percent,” a source in the Property Management Department said.

If their retirement occurs in three years but depreciation takes five years, the Governor and Deputy Governors would have to pay more to take the vehicle home. For example, a vehicle worth Rs 1 crore 80 lakh depreciates at 20 percent annually and reaches zero in 5 years. If retirement occurs in three years, it will take another two years for the vehicle to reach zero.

In such a case, the value of the vehicle would be Rs 72 lakh. However, by depreciating it to zero and keeping only 20 percent of the initial value, one would have to pay only Rs 36 lakh to take the vehicle home.

But if the minutes are prepared according to Governor Poudel’s wishes, even Rs 36 lakh will not have to be paid. The Governor and Deputy Governors will be able to take home a vehicle worth Rs 1 crore 80 lakh by paying Rs 18 lakh.

Initially, this proposal was attempted to be advanced by Rastra Bank’s Human Resources Management Department. The Human Resources Management Department disagreed, stating that such illegal work cannot be done according to accounting principles and values.

After Human Resources did not agree, this proposal was directed to be advanced by the Property and Service Management Department.

Rastra Bank’s employee union has already expressed disagreement after learning about the policy-level misuse being attempted for the Governor and others. After their protest, the Governor’s Office had already entered into negotiations.

According to sources, a proposal to increase the facilities received by employees has also been made from the Governor’s Office to the employee union.

“An attempt is being made to do something illegal by blatantly violating the established system. That is why we could not agree,” an official of the Human Resources Department told Bizmandu.