Banks and Financial Institutions Reluctant to Deposit in Central Bank, Only NPR 32.05 Billion Collected

Despite ample liquidity in the market, banks and financial institutions showed reluctance to deposit funds in the Nepal Rastra Bank (NRB), offering only NPR 32.05 billion out of the NPR 100 billion the central bank sought to absorb on Kartik 1.

NRB's Plan: The Monetary Management Department of NRB had issued a notice to collect NPR 100 billion in deposits for a period of 13 days. However, the banks were unable to meet the target.

Bank Participation: A total of 8 banks and financial institutions participated in the bidding process, submitting only 11 proposals.

Deposit Collection: Banks proposed to deposit just NPR 32.05 billion, which the NRB accepted.

Interest Rate: Banks proposed to deposit the funds at an interest rate ranging from 2.9065% to 3%. Eventually, the NRB collected the funds at a weighted average interest rate of 2.9962%.

Participation Rules: Only Class "A", "B", and "C" banks and financial institutions licensed by NRB were allowed to participate in the bidding process for the deposit collection tool.