KATHMANDU, Dec 7: Nepal Rastra Bank (NRB) is investing more than Rs 3 billion in the fixed deposits of banks and financial institutions (BFIs).
Giving a maturity period of 365 days, NRB called on the BFIs on Monday to bid for the aforementioned amount. Last week too, the central bank called the BFIs to invest Rs 1.10 billion in their fixed deposits.
Revised interest rate corridor system introduced
NRB is offering the commercial banks to accept deposits of Rs 2.44 billion in total. Similarly, development banks have been offered to accept fixed deposits of Rs 457.50 million while the central bank has sought to deposit Rs 152.50 million in the finance companies.
The central bank has stepped up efforts to inject money in the BFIs amid a deepening crunch of loanable funds in the country’s banking system. According to the NRB’s record, the BFIs issued a loan of Rs 4.58 trillion compared to the deposit collection of Rs 4.80 trillion as of Monday.
On average, the credit-deposit (CD) ratio of banks has reached 91.24 percent, which is way higher than the NRB-set limit of 90 percent.
