Kathmandu: The Supreme Court on Tuesday delivered an interim order to not implement the age limit for Chief Executive Officers (CEO) at banks and financial institutions of category A, B and C.
The order was issued by the single bench of the Chief Justice Cholendra Shumsher Rana after preliminary hearing a writ.
The CEO of Prime Commercial Bank, Narayan Das Manandhar, challenged against the Nepal Rastra Bank (NRB) decision from which he was dismissed from the post.
Nepal Rastra Bank, the central bank of Nepal, has recently issued an order to limit the age of the CEOs and the Directors as 65 years. This order will be applicable in all banks and financial institutions of A, B and C categories.
CEO Manandhar had to resign from the post. After the SC order, it has paved the way for Manandhar to join the bank as CEO again.
The central bank introduced the policy by amending the Unified Directives 2075 on August 6. Prior to this, there was no age limit for the post of chief executive officer. Nepal Rastra Bank has also introduced an age bar for promoters of banks and financial institutions. According to the new directive, anyone who is 70 years old or above cannot be appointed as a board member.
The central bank has also adopted a policy of not giving continuity to a board member upon reaching the age of 74. Following the central bank’s move, a number of chief executive officers and directors who reached the age limit have been affected.