NRB Issues Repo of Rs 3 Billion

November 17: Nepal Rastra Bank has issued Rs 3 billion worth of repo to banks and financial institutions (BFIs) to tackle decreasing liquidity in the financial market. NRB had been mopping up excess liquidity from the market through reverse repo till one week ago. However, the bank has now issued repo worth of Rs 3 billion citing lack of liquidity in the financial market.

The BFIs taking the money through repo need to return the amount with interest within 14 days. The repo money is accessible to A, B and C listed BFIs only. According to NRB, the BFIs can submit their auction tender for the repo through online bidding system of the bank. Prior to this, the bank issued repo of Rs 5 billion on October 5.