Government Allows 60% of Local-Level Funds to be Counted as Deposits

The government is set to permit 60 percent of the accumulated funds at the local level to be recognized as deposits.

The Ministry of Finance has made the decision and is scheduled to send a letter to the Nepal Rastra Bank on Friday. Starting today, the Nepal Rastra Bank is preparing to issue directives enabling 60 percent of the local-level accumulated funds to be considered as deposits by the banks.

In the month of Asar, there was approximately 1 kharba 10 Arba in the reserve fund at the local level, with 66 percent of that amount totaling about 66 arba. Consequently, this move is expected to increase deposits in commercial banks by over 60 arba.