(1) Government of Nepal, the Council of Ministers shall remove the Governor, Deputy Governor and Director on conditions stipulated under Sub-section (5).
Provided that Government of Nepal shall not deprive the concerned person from a reasonable opportunity to defend himself/herself prior to remove him/her from his/her office.
(2) Government of Nepal shall, remove the Governor from his office pursuant to Sub-section (1), on the recommendation of an inquiry committee constituted under Section 23.
(3) While removing a Director or Deputy Governor pursuant to Sub- section (1), Government of Nepal shall cause to conduct an inquiry by committee and remove him/her from the office on the basis of the recommendation made by the committee.
(4) Once Government of Nepal initiates the process for removing the Governor, Deputy Governor and Director pursuant to Sub-section (1), they shall be deemed to have been ipso facto suspended from the office.
(5) The Governor, Deputy Governor and Director shall be removed from the office on any of the following grounds:-
(a) If one is disqualified to become a Director pursuant to Section 21; or
(b) The lack of capability to implement or cause to implement the functions which the Bank has to carry out in order to achieve the objectives of the Bank under this Act; or
(c) If one has committed any act causing loss and damage to the banking and financial system of the country; or
(d) If one is found to have acted dishonestly or with mala fide intention in any transaction related to the business of the Bank; or
(e) If professional license is revoked or prohibited from carrying out any profession rendering disqualified to be engaged in any trade or profession on the ground of gross misconduct; or
(f) If one is absent for more than three consecutive meeting of Board without a genuine reason;
(6) Except on the grounds referred to in Sub-section (5), no Governor, Deputy Governor and Director shall be removed from office.