KATHMANDU: Parliamentarians have proposed numerous amendments to the bill aimed at amending the Banks and Financial Institutions Act (BAFIA). Notably, their interest ranges from the qualifications of directors of banks and financial institutions to bringing these banks under government ownership.

Hari Dhakal, a member of the Rastriya Swatantra Party (RSP), filed an amendment proposal regarding the qualifications of directors. He demanded that a person should have worked for at least five years at the level of a director or officer of a foreign or domestic bank, financial institution, or an organization in a related sector, or at the official level of the Government of Nepal to be eligible for the position of director.

His proposal also mentions that a person with a master's degree who has worked for at least three years as a manager or officer at a foreign or domestic bank, financial institution, or organization in a related field, or at least at the official level of the Government of Nepal, should also be eligible for the post.

Currently, a director's tenure is a maximum of four years, and they can be reappointed or nominated. However, an independent director can only be appointed for one term, according to the amendment. Deepak Khadka, Ramnath Adhikari, Dr. Chanda Karki, Krishna Kumar Shrestha, Metmani Chaudhary, and other MPs support this provision.

The bill proposes that after a director's term in office is over, they can be reappointed to the same position for another term. However, independent directors cannot be reappointed.

Manish Jha, another RSP MP, has proposed that banks and financial institutions should have a board of directors consisting of at least seven and at most nine members. He emphasized the need for a provision to appoint two independent directors, including at least one woman, to the board of directors. Jha has filed an amendment proposal demanding that this information should be presented at the first general meeting after such appointments.

Similar amendment proposals have also been registered by RSP MPs Hari Dhakal and Lakshmi Tiwari. RSP MP Sobhita Gautam has filed an amendment proposal stating that the board of directors should have a minimum of seven and a maximum of 11 members.

The BAFIA Bill seeks to define digital currency. "Digital currency should be understood as the digital currency issued by Nepal Rastra Bank," the bill states. RSP MP Jha has proposed an amendment to reconsider this definition. According to him, digital currency should be defined as a mode of exchange that has no physical or tangible basis, exists purely electronically, and does not include electronic money. The definition should align with international accounting standards.

Prem Suwal, an MP from the Nepal Workers and Peasants Party, has proposed a provision that only the state should invest in banks and financial institutions. He argues that politics will fall into the hands of those with money and access if the private sector is allowed to invest. Suwal's proposal suggests adding wording to the bill's preamble to establish and operate banks and financial institutions solely under state ownership.

Parliament's Finance Committee Secretary Rekha Upadhyay Khanal said that the amendment proposals submitted to the Finance Committee will be discussed soon. "All amendment proposals will be discussed, and necessary decisions will be taken," she said.