20 billion liquidity into the financial system of Nepal, How ?

Nov Wed 2021 01:41:22

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20 billion liquidity into the financial system of Nepal, How ?

Kathmandu. Nepal Rastra Bank is sending 20 billion rupees of liquidity to the financial system. Through repo, the central bank will send Rs 20 billion liquidity to the financial system on Thursday.

The liquidity will be for a period of 14 days, the NRB said in a statement. In addition, NRB will issue repo for the third time in November. Earlier, repo of Rs 10 billion was issued on October 19 and Rs 20 billion on November 25.

With the release on Thursday, NRB will provide Rs 50 billion repo this month. Banks have been short of money for some time. The latest monetary policy stipulates that the ratio of bank deposits to loans (CD ratio) should be maintained at a maximum of 90 percent. But some banks have not been able to maintain this ratio.