Nepal Rastra Bank Plans to Mop Up Rs 50 Billion from BFIs for Liquidity Management

The Nepal Rastra Bank (NRB) has announced plans to withdraw Rs 50 billion from commercial banks and financial institutions (BFIs) to manage liquidity in the financial system. The measure aims to stabilize money supply and control inflationary pressures in the market.

Strategy for Financial Stability

NRB officials stated that the liquidity mop-up will involve open market operations, including the sale of government securities to absorb excess funds. Meanwhile, the move is part of broader monetary policy measures to maintain economic stability and ensure a balanced flow of credit across sectors.

Impact on Banking and Economy

Financial analysts note that this step may temporarily affect lending rates and bank liquidity but is intended to prevent overheating of the economy. Authorities emphasized that careful monitoring and timely interventions are necessary to support sustainable growth while controlling inflation.