Prime Minister Sher Bahadur Deuba has said that the governor has been suspended for not cooperating with the finance minister.
Following the suspension of the governor, the government on Friday had formed a three-member inquiry committee headed by a former Supreme Court judge.
At a meeting of the ruling party held today amid widespread criticism of the action against the governor, General Secretary of the Nepali Congress Gagan Kumar Thapa and CPN-Maoist central leader Barshaman Pun had raised questions about the economic crisis and the action taken against the governor.

During the meeting, Prime Minister Deuba said that action was taken against him for not cooperating with the Finance Minister.

It is said that action was taken against the governor on the basis of the complaint of the finance minister that he did not cooperate in all the works.