Government appoints Nilam Dhungana Timsina as acting governor of central bank

KATHMANDU: The Nepal government has appointed Nilam Dhungana Timsina, Deputy Governor of Nepal Rastra Bank (NRB), as the Acting Governor, marking a significant transition in the country’s central banking leadership. The official letter designating Timsina as Acting Governor, issued on Chaitra 22 (April 04, 2025), reached the NRB headquarters today, April 07, 2025, according to bank officials.

NRB Information Officer Suman Nyaupane confirmed the development, stating, “A letter from the Ministry of Finance assigning the responsibility of Acting Governor to Deputy Governor Nilam Dhungana has arrived.” The appointment was made by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel under Section 27 of the Nepal Rastra Bank Act, 2058 (2002), which empowers the government to designate an acting governor when necessary.

The decision comes amid speculation about the permanent appointment of a new NRB Governor, a position that has remained in limbo following recent developments. A Cabinet meeting scheduled for 3 PM today is expected to address key national issues, with some sources suggesting that the appointment of a new governor could be on the table. However, a minister speaking on condition of anonymity clarified that no formal agenda regarding the governor’s appointment has been received yet. “As of now, the issue of appointing a new governor is not on the agenda for today’s Cabinet meeting. The recommendation committee for the governor’s appointment has not even convened yet,” the minister revealed.

Despite the absence of an official agenda, there is buzz that the recommendation committee could convene shortly before the Cabinet meeting and propose a shortlist of three candidates for the governorship. This last-minute move, if it materializes, could pave the way for a swift decision, though no confirmation has been provided as of this writing.

Timsina’s appointment as Acting Governor ensures continuity in the NRB’s operations at a time when Nepal’s economy faces pressing challenges, including inflation, foreign exchange reserve management, and banking sector stability. As Deputy Governor, Timsina has been a key figure in the central bank, bringing a wealth of experience to the role. Her interim leadership is seen as a stabilizing measure while the government deliberates on a permanent appointee.

The NRB, established in 1956, serves as the backbone of Nepal’s monetary policy and financial regulation. The governor’s position is pivotal in steering the country’s economic course, making the upcoming appointment a matter of keen public and political interest. With the Cabinet meeting just hours away, all eyes are on whether the government will expedite the process or allow Timsina to helm the central bank in an acting capacity for an extended period.

For now, Nilam Dhungana Timsina steps into the spotlight as Acting Governor, tasked with upholding the NRB’s mandate until a permanent successor is named. Further updates are expected following today’s Cabinet deliberations.