Banks started using Standing Deposit Facility, 28 Billion Rupees deposited

Kathmandu : Banks have started using Standing deposit facility. On 14th of February, 2024 A.D (2nd of Falgun, 2080 B.S) banks deposited 27 billion 850 million Rupees in Central Bank of Nepal (Nepal Rastra Bank). Banks have kept the excess investable amount in the Central Bank of Nepal.

The Central Bank of Nepal had said that it will provide Standing liquidity facilities (SLF) in the monetary policy of the current fiscal year. Since the mid of February (month of Falgun), the central bank of Nepal has provided Standing liquidity facilities to banks. Banks used this facility for the first time on 14th of February, 2024 A.D.

Banks and financial institutions can keep excess liquidity in their institutions with the Central Bank of Nepal at a fixed interest rate. At present, since the lower limit of interest rate is 3 percent, banks will be allowed to keep deposits at the same interest rate.

Eligible counterparties who wish to avail Standing deposit facility must submit the application and transaction details to the department within the specified banking business hours.

Banks and financial institutions that have no outstanding inter-bank loan liability, the daily loan-to-deposit ratio for the last 30 days is within the specified limit, the daily net liquid assets for the last 30 days are more than the specified limit, and the published minimum interest rate for all types of domestic currency savings deposits is not less than the interest rate of this facility, such institution will get this facility.

In the case of minimum amount of Standing Deposit Facility of 200 million Rupees and in case of more than that, when dividing by 50 million rupees there should be an amount that will remain without remainder.