21st May 2025, Kathmandu
Dr. Biswo Nath Poudel officially began his tenure as the new Governor of Nepal Rastra Bank (NRB) on May 21. Early in the morning, he visited the Supreme Court to take his oath of office from Chief Justice Prakashman Singh Raut.
NRB Governor Poudel’s First Act
Soon after the ceremony, he headed to NRB headquarters. There, he formally assumed his responsibilities as the 18th Governor of the central bank.
First Action: Fresh Banknotes on the Way
As his first official move, Governor Poudel signed a decision to print new NPR 500 and NPR 1,000 notes. This decision aims to refresh the quality of currency in circulation and enhance security features.
It also highlights his focus on efficiency and timely decisions.
The updated banknotes will help phase out older, damaged ones. They are also expected to include new security enhancements to prevent counterfeiting.
Independent Policy Direction Emphasized
Governor Poudel shared his vision for monetary and fiscal coordination. He stated that monetary policy should stand on its own.
“Monetary policy is not a branch of fiscal policy. It’s an independent framework,” he said. He acknowledged the need to support the government’s financial plans. However, he added that monetary guidelines should not create unnecessary obstacles.
If such issues arise, the policies will be reviewed and improved.
This message signals his intent to protect the central bank’s autonomy while also aligning with national priorities.
Internal Matters Handled Calmly
One major internal matter also came up. Executive Director Gunakar Bhatta, who had also been a contender for the governor role, submitted his resignation.
Governor Poudel addressed the issue briefly. He said it was an internal matter that would be dealt with through the bank’s internal processes.
He avoided further comments and redirected focus to policy and reforms.
Appointment Comes at a Crucial Time
Dr. Poudel steps in during a challenging time for Nepal’s economy. Inflation continues to rise. Liquidity in the banking system remains tight. Economic growth is slower than expected.
Dr. Poudel brings experience to the table. He previously served as Vice-Chairman of the National Planning Commission. He also has a strong background in economic policy.
His appointment follows the completion of former Governor Maha Prasad Adhikari’s term, which had received both praise and criticism.
Why the Note Printing Decision Matters
The decision to print new NPR 500 and 1,000 notes may look simple. However, it reflects a strong focus on monetary management. Clean, secure banknotes boost trust in the financial system.
Financial analysts believe that the new notes will feature upgraded security. These features will help counter fake currency circulation.
Moreover, maintaining high-quality notes ensures smoother daily transactions and reflects the central bank’s professionalism.
Clear Goals on Policy Coordination
Governor Poudel’s remarks suggested better teamwork between the central bank and the Ministry of Finance. Still, he emphasized that monetary policy should remain free from political influence.
He expressed openness to adjusting policies when needed. “If monetary policy creates barriers to fiscal implementation, we will revise it,” he said.
This cooperative but independent stance could ease past tensions between NRB and the government. It also sets the tone for balanced governance moving forward.
Many Challenges Await
The road ahead will not be easy. Governor Poudel must tackle inflation. He must also manage interest rates, stabilize the banking sector, and support investment recovery.
Public confidence in the financial system has declined in recent months. Restoring trust and promoting economic stability will be high on his list.
He is also expected to address issues such as foreign reserves, digital transactions, capital markets, and remittance management.
A Promising Start
Governor Poudel’s quick decision to print new banknotes signals his readiness to act. It reflects a practical approach and sets a positive tone for his term.
Although printing and distributing new notes takes time, the message is powerful—this Governor is serious about change.
His firm statement about policy independence also impressed many observers. In a system where political pressure often influences institutions, this clarity is much needed.
Final Thoughts
Dr. Biswo Nath Poudel has stepped into a demanding role. The economy is under pressure. Institutions require reform. The people want results.
His early moves indicate that he is aware of these expectations. The decision to print new banknotes may be small in size, but it is large in meaning.
If Governor Poudel continues with the same pace and direction, Nepal Rastra Bank may see stronger reforms, better coordination, and greater credibility in the months to come.
For more: NRB Governor Poudel’s First Act