Nepal Rastra Bank to absorb Rs 125 billion in liquidity
Summary
Nepal Rastra Bank is set to absorb Rs 125 billion in liquidity through competitive bidding to manage excess funds amid stagnant economic activity and low credit flow.
Key Points
- Nepal Rastra Bank will collect Rs 125 billion from deposits to absorb excess liquidity.
- Economic activity remains stagnant with low credit flow from banks despite recent political changes.
- Banks are showing less interest in deposit growth, lowering interest rates and discouraging fixed deposits.
- The deposit collection tool involves competitive bidding among licensed banks and financial institutions to manage liquidity and interest rates.
