BFIs took short-term loans of Rs 46.55 billion from central bank on Sunday, citing liquidity crisis

KATHMANDU: Banks and financial institutions (BFIs) received short-term loans of Rs 46.55 billion from Nepal Rastra Bank (NRB) on Sunday, citing the liquidity crunch in the banking system.

The BFIs took the aforementioned amount of short-term funds by utilizing the standing liquidity facility (SLF). According to the NRB, in the first two and a half months starting from the current fiscal year, BFIs took short-term loans of Rs 1.976 trillion to meet their immediate financial liabilities.

On September 30, the last day before the Dashain holiday started, the BFIs received Rs 71.04 billion under SLF. The central bank charges an interest rate of 8.50 percent for this type of short-term fund. Mr