BANKING SECTOR OF NEPAL BECOMING WOMEN-FRIENDLY
Background:
Nepal Rastra Bank (NRB) recently announced two major women- friendly decisions. First, through the 5th amendment to its internal Staff Regulations, NRB incorporated progressive provisions regarding maternity leave. Second, it published a “Draft Model Employee Regulations” on its official website to acquire public feedback, aiming to establish a standardised template for the broader
banking sector to ensure these gender- responsive provisions are adopted across all financial institutions.
Under NRB’s previous framework, female employees were eligible for paid maternity leave for a maximum of two live births. Under the amended regulations, female staff will no longer forfeit their maternity leave rights based on the number of children they have. Furthermore, based on specialist medical advice and formal hospital
documentation, female employees who suffer a miscarriage or stillbirth between three and five months of gestation are entitled to two weeks of rest leave, it’s paid. For miscarriages or stillbirths occurring between five and seven months of gestation, six weeks of paid maternity leave is granted. In cases where childbirth (including stillbirth or miscarriage) occurs at seven months of gestation or later, full maternity leave is provided.
This policy directly supports female employees’ rights to safe motherhood, occupational health, and family well- being. Under the revised rules, female staff receive a total of 98 days of fully paid maternity leave before or after childbirth. Additionally, they may opt for up to six months of unpaid maternity leave without deducting from any other leave balances. This initiative aligns with the Labour Act, Safe Motherhood Legislation and the spirit of relevant Supreme Court directives to boost morale among female staff.
NRB’s policy directly operationalizes Section 13 of Nepal’s Right to Safe Motherhood and Reproductive Health Act, 2075 (2018), which guarantees a minimum of 98 days of paid maternity leave and up to one year of unpaid leave upon medical recommendation (Government of Nepal, 2018). Furthermore, this framework aligns with International Labour Organization (ILO) Maternity Protection Convention No. 183, which establishes international standards to prevent female labor force attrition caused by maternity-related career disruptions (ILO, 2000).
A woman: Career Retention and Institutional Investment
International experience indicates that the primary bottleneck in female leadership development is not initial recruitment, but maintaining career momentum and motivation. During pregnancy, maternity and early childcare, many female professionals experience career stagnation. Organisations that implement family-friendly policies succeed in retaining talent, boosting job satisfaction, and accelerating women’s progression into executive ranks. Consequently, major central banks and multilateral financial institutions prioritise structured leadership development, formal mentorship programmes, succession planning, and family-responsive policies.
Nepal Rastra Bank currently employs approximately 1,200 staff members, of which around 350 (approximately 30%) are women. Out of 686 officer- level positions, 194 (28%) are held by women, while out of 495 assistant-level staff, 156 (31.5%) are female.
Through these maternity leave reforms, NRB is investing in long- term human capital. In the long run, this policy serves as a foundation for retaining female talent, ensuring continuous professional development, and expanding women’s representation in executive management.
We can find some international literature that shows Diversity and Central Bank Stability. Empirical research from the International Monetary Fund (IMF) demonstrates that gender diversity in financial leadership yields measurable macroeconomic and financial stability benefits. Comunale et al. (2023) highlight that occupational segregation remains widespread across central banks globally, where women remain heavily concentrated in administrative roles rather than monetary policy and financial supervision.
Women’s Representation in Nepal Rastra Bank
Nepal Rastra Bank currently employs
approximately 1,200 staff members, of which around 350 (approximately 30%) are women. Out of 686 officer-level positions, 194 (28%) are held by women, while out of 495 assistant-level staff, 156 (31.5%) are female. Although overall female representation remains lower than male representation, these figures are encouraging relative to many other public sector entities in Nepal.
The most promising metric lies in the age demographic of NRB’s workforce: • Under 25 years: 8 out of 28 staff members (29%) are women. • 25–35 years: Women account for 45% (185 out of 412 employees). • 35–50 years: Women represent 25% (118 out of 472 employees). • Above 50 years: Women represent 13% (35 out of 269 employees).
This age distribution demonstrates a significant increase in female entry in recent years, establishing a strong “leadership pipeline.” Today’s young female officers represent tomorrow’s directors, executive directors, and top executive leaders.
A level-wise breakdown shows strong female representation at the entry officer level: 148 out of 405 Assistant Directors (Officer Class III) are women. At the Officer Class I level (Director), 14 out of 59 are women, and at Officer Class II (Deputy Director), 32 out of 204 are women. While there are currently no women in Special Class (Executive Director) positions, NRB’s history includes female Deputy Governors and Executive Directors, indicating a trajectory toward gender-inclusive governance.
Furthermore, education levels among female staff are robust. Approximately 95% of officer-level staff (overall) hold at least a Master’s degree. Among female officers, 100% of Class I officers hold Master’s degrees, some Class II officers hold M.Phil. degrees, and 140 Class III
officers hold Master’s degrees. This confirms that female employees possess the academic and technical qualifications required for executive positions. Lower representation in top-tier roles is therefore an issue of career continuity and leadership development rather than technical capability.
Geographically, staff are from all seven provinces, though representation varies considerably: • Bagmati: 32.2% female representation (122 out of total 380 staff) • Koshi: 19.2% female representation (62 out of total 227 staff) • Lumbini: 14% female representation (44 out of total 165 staff) • Madhesh: 13% female representation (35 out of total 155 staff) • Gandaki: 12% female representation
(46 out of total 143 staff) • Sudurpashchim: 7.4% female representation (13 out of total 87 staff) • Karnali: 2% female representation (out of 24 total staff) These disparities highlight the need to expand regional inclusion strategies targeting Madhesh, Karnali, and Sudurpashchim provinces. The geographical disparity in human resources mirrors broader financial inclusion indicators documented in the Nepal Financial Inclusion Index 2025 (NRB, 2025). Aligning institutional hiring practices with regional financial literacy programmes is essential to achieving balanced socio-economic empowerment across all provinces.
Women’s Representation in Nepal’s Overall Banking Sector
Across all four tiers (Class A, B, C, and D) of financial institutions in Nepal, direct employment stands at approximately 78,000 individuals, with women comprising roughly 41% of the total workforce. • Commercial Banks (Class A): Hold 80% of total financial sector assets, deposits, and loans, but provide only 58% of total financial employment. • Microfinance Institutions (Class D): Employ 22,000 people (28% of total financial sector workforce) and exhibit high female participation, contributing directly to rural financial access and female entrepreneurship.
Across all institutional tiers, women comprise 40%-41% of total staff and roughly 28% of officer-level positions. The central challenge moving forward is translating this numerical workforce presence into managerial and board-level representation.
Strategic Priorities and Demand- Side Readiness
Moving forward, institutional priorities must shift from entry-level recruitment to executive development, succession planning, and inclusive organisational culture. However, supply-side institutional policies alone are insufficient; female professionals must also strengthen their individual readiness, technical excellence, and leadership aspirations.
Leadership is not a gender privilege. It is the integration of knowledge, technical competence, integrity, strategic decision-making, and accountability. Female banking professionals must proactively pursue growth opportunities, overcome self-hesitation, and demonstrate “Demand-Side Readiness.” Continuous professional development and high-impact performance remain the primary determinants of sustained female leadership in the financial sector.
(Paudel is Executive Director and Spokesperson at Nepal Rastra Bank.)
