Kathmandu. Banks and financial institutions have relied on the Rastra Bank to manage liquidity due to lack of credit investment due to the slowdown in the economy in the last few years. Banks and financial institutions have used the permanent deposit facility provided by the Rastra Bank due to lack of demand for loans in the market.

Nepal Rastra Bank (NRB) has withdrawn more than Rs 21.2 trillion from banks and financial institutions through permanent deposit facility in the 12 months of the current fiscal year. Nepal Rastra Bank (NRB) has withdrawn Rs 21,231.80 billion from the bank in the current fiscal year. The interest rate on the deposit is around 3 per cent.

Nepal Rastra Bank (NRB) has issued 148 permanent deposits from banks and financial institutions. Nepal Rastra Bank (NRB) had implemented the permanent deposit facility through a half-yearly review of its monetary policy for the fiscal year 2081-81 BS. Nepal Rastra Bank (NRB) has been providing permanent deposit facility at deposit collection rate, which is the lower limit of the interest rate corridor, through monetary policy to effectively implement the interest rate corridor. Using this facility, banks and financial institutions have kept deposits in the Rastra Bank.