Nepal Rastra Bank to absorb Rs 125 billion in liquidity

Kathmandu. Nepal Rastra Bank is set to collect Rs 125 billion in deposits on Friday. Even two weeks after the formation of the new government, excess liquidity remains in the market. To mitigate this, the central bank is once again using a deposit collection tool via competitive bidding to absorb funds.With economic activity stagnant for a long period and the recent Gen-Z movement, credit flow from banks has failed to increase. Anticipating no immediate growth in lending, banks are showing little interest in deposit growth, lowering interest rates and discouraging fixed deposits.Currently, total deposits have exceeded Rs 7.8 trillion. The...