Nepal Rastra Bank (NRB) has issued a repo worth Rs. 30 billion for a period of seven days as there is a lack of money to invest in the banking and financial system.
If there is a liquidity problem in the banking system, the bank will issue short-term repo. Commercial banks, development banks, and financial institutions will be able to purchase through repo bidding which will mature on October 30.
Earlier, NRB had provided repo of Rs. 20 billion for seven days, Rs. 30 billion, and Rs. 20 billion for 14 days.
Due to lack of liquidity, banks and financial institutions use repo, interbank lending, and standing liquidity facility (SLF). Banks and financial institutions seem to have stopped getting interbank loans due to a lack of liquidity. Banks and financial institutions regularly take SLF facilities.
According to the NRB, banks and financial institutions have raised Rs. 409.56 billion through SLF in the current fiscal year till Wednesday. NRB has made public the data that banks and financial institutions have raised Rs. 27.24 billion through SLF 12 times on Wednesday alone.
