As per the new mechanism, individuals above 65 years of age are not eligible to get appointed as CEO of any BFIs. Moreover, CEOs who are above 69 years of age will have to vacant their post. Similarly, no individual above the age of 70 shall get appointed, re-appointed or elected as a director of any BFIs. Additionally, directors who are above 74 years will have to leave their seat.
However, the banking sector has expressed its dissatisfaction with the NRB decision. Following the resentment of BFIs, NRB indicated the possibility of flexibility on the issue.
According to Chitamani Siwakoti, "NRB will not back down from its decision regarding the issue. However, as the circular did not clearly mention about the same for merger opting BFIs, NRB board of directors will take a decision about the matter."
As per the statement given by Siwakoti, the central bank might unleash the mechanism in case of merger opting BFIs that will give safe landing to the NRB decision. Plus, it will also ensure the conclusion of any ongoing merger/acquisition process that will otherwise end mid-way due to the end of the tenure of any CEO or director because of the directive.
