The staffers of Nepal Rastra Bank (NRB) are not allowed to join banks and financial institutions (BFIs) for up to three years after the retirement. This legal provision came into effect after the Legislature Parliament on Thursday endorsed the second amendment of Nepal Rastra Bank Act with a majority.

 The proposal was tabled at the parliament by Finance Minister Krishna Bahadur Mahara for endorsement.

According to the amended act, officials of the central bank can join BFIs only after getting approval and clearance from the NRB. The amendment was made to avoid probable conflict of interest, according to a NRB official.

 “The prohibitory provisions were inserted in the bill due to concerns that central bank officials could work in the interest of the BFIs which they plan to join after retirement,” said the official.  “So it is necessary to fix a certain prohibitory period for them to avoid conflict of interests.”