People are likely to get sufficient new currency notes for the Dashain festival as liquidity has increased in the banking system.
The Nepal Rastra Bank (NRB) report showed that excess liquidity of banks and financial institutions went up by Rs. 1.19 billion in two days reflecting that the stock of currency vault has increased. The report accounted for excess liquidity of Rs. 16.14 billion on October 3 up from Rs. 14.95 billion on 2 October.
As the demand for the exchange of new currency notes is picking up for the Dashain festival, stocking up of liquidity provides relief to bankers besides the general public.
The NRB has directed the bank and financial institutions to facilitate the exchange of new currency notes during the festival season. The commercial banks are notified to use at least 10 branches for the currency exchange facility.
In Kathmandu valley, at least 150 branches of the 27 commercial banks have been delivering the service from different locations.
NRB deputy spokesperson Narayan Prasad Pokhrel said that the NRB has directed banks and financial institutions to provide the exchange facilities of new currency notes at least from their 10 branches. He said that NRB too has been providing the exchange facilities to the general public at those places where the branches of commercial banks and financial institutions are not available.
He, however, said that injecting new currency notes in the financial market is a regular operation of the NRB. The currency management department is looking after the maintenance of sufficient the new currency notes in its vault throughout the year. He also added that it doesn’t have implications for inflation.
source : TRN,