Kathmandu- Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba met for an hour on Sunday evening at Baluwatar to discuss the delayed appointment of the Nepal Rastra Bank (NRB) governor.

During the meeting from 8 to 9 p.m., Deuba expressed dissatisfaction over the delay in appointing Dr. Gunakar Bhatta as NRB governor, despite a prior mutual agreement.

A source close to the Nepali Congress said PM Oli asked for time until Thursday to finalize the appointment.

'Oli assured Deuba that the governor would be appointed by Thursday, as per the Nepali Congress proposal,' the source said.

The governor’s post has remained vacant since Maha Prasad Adhikari’s term ended on April 6. As per the NRB Act, a new governor should be appointed at least a month before the incumbent’s term ends.

However, political tensions between the Nepali Congress and CPN-UML have stalled the process, affecting the central bank's operations, especially regulatory functions.

Currently, Dr. Neelam Dhungana is serving as Acting Governor. Though her role is temporary, she has made significant decisions, including loan restructuring for construction firms awaiting government payments—a move previously rejected by the NRB board and seen as benefiting a few banks.

Dhungana has reportedly refused to accept Bhatta’s resignation, submitted on April 18, allegedly due to rivalry and with backing from PM Oli to obstruct the appointment process.

Meanwhile, a supplementary writ petition was also filed against Bhatta, challenging his qualifications and alleging political bias. However, a Supreme Court bench of Justices Til Prasad Shrestha and Bal Krishna Dhakal dismissed the petition.

The Cabinet had formed a recommendation committee on March 10, led by Finance Minister Barsha Man Pun, with economist Bishwanath Paudel and former Governor Bijay Nath Bhattarai as members. Bhattarai  resigned, citing the Finance Minister's lack of initiative.

The Cabinet then appointed outgoing Governor Maha Prasad Adhikari to the committee.