Nepal’s total deposits in banks and financial institutions have surpassed NPR 7 trillion (70 kharba), the highest ever recorded, according to Nepal Rastra Bank.
Out of this total, commercial banks alone hold deposits worth NPR 6.62 trillion. The remaining NPR 700 billion is distributed among development banks and finance companies.
Experts say that the actual deposit amount in the overall economy is even higher. This is because deposits collected by microfinance institutions and cooperatives are not included in the central bank’s official statistics.
Despite this surge, the large volume of money in the market isn’t a new trend. For the past one to one and a half years, there has been excess liquidity in the market. To manage this, Nepal Rastra Bank has been withdrawing money from the system at least twice a week. Just this Wednesday, the central bank is set to pull out NPR 90 billion from circulation.
