NRB collects Rs 70 billion from BFIs in the month of July

ShareSansar July 27:

On July 26 (yesterday) Nepal Rastra Bank has collected Rs 20 billion from Bank and Financial Institutions (BFIs) through its 'deposit collection' instrument. Weighted interest rate of 1.17 percent has been fixed for it.

Nepal Rastra Bank in the month of July has already soaked Rs 70 billion through its deposit collection instruments from Bank and Financial Institutions.

Weighted interest rate of the deposit collection is increasing. While the weighted interest rate of first deposit collection was 0.06 percent on July 12 now it’s 1.17 for deposit collection issued on July 26.

‘Deposit Collection’ is an instrument whereby the central bank absorbs the liquidity from BFIs for a period of 90 days through the collection of deposits from BFIs where interest rates are fixed through the auction.

 A week prior, there was around Rs 100 billion liquidity surplus in the banking system.