Kathmandu- Dr. Gunakar Bhatta, Executive Director at Nepal Rastra Bank (NRB) and a strong contender for the governor’s post, has resigned.

He stepped down on Friday following an agreement between the ruling Nepali Congress and CPN-UML over the appointment of the next NRB governor.

'I resigned this morning. The approval process is underway,' Bhatta told Biznessnews.

An NRB source said his resignation is likely to be approved soon, as top political leaders have signaled their support.

A recommendation committee, formed a month ago and led by Finance Minister Bishnu Prasad Paudel, including economist Bishwanath Paudel, and former governor Bijay Nath Bhattarai, has yet to submit its list of candidates.

Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba met for an hour at Baluwatar on Tuesday to discuss the appointment.

PM Oli earlier proposed Acting Governor Neelam Dhungana for the permanent role, but the move has drawn criticism from within the coalition, especially from Congress leaders.

A senior Congress member, requesting anonymity, said the focus has now shifted to directors Dr. Gunakar Bhatta.

Earlier candidates Rajendra Kumar Kshetri and Rabindra Pandey were dropped due to age-related legal issues. Congress President Deuba is now pushing strongly for Dr. Bhatta’s appointment.