Kathmandu, Aug. 21 -- Former governors of Nepal Rastra Bank have criticised a parliamentary committee's decision to cut the tenure of the central bank's governor, deputy governors and board members to three years, warning the move could undermine institutional stability and policy continuity.

The Federal Parliament's Finance Committee, discussing amendments to the Nepal Rastra Bank Act on Thursday, decided to set a three-year term for the central bank's top officials, while allowing the Cabinet to extend their tenure by another two years based on performance.

If the amendment is endorsed unchanged by both the House of Representatives and the National Assembly, the Cabinet will have the power to decide whether officials should remain in ...