General Government Deposits Surge 95% Year-on-Year to Rs 255.6 Billion – NRB Data (Mid-Sept 2025)

According to the Nepal Rastra Bank (NRB) Central Bank Survey – Mid-September 2025, the general government deposits surged by 95.5% year-on-year, reaching Rs 255.6 billion, compared to Rs 130.7 billion in the same period last year. This sharp increase highlights a substantial buildup of fiscal reserves within the NRB, reflecting higher revenue collection, slower expenditure disbursement, and an overall tight liquidity environment in the financial system.

The growth in government deposits was one of the main factors contributing to a decline in reserve money, as it absorbed liquidity from commercial banks and the broader market. The NRB’s report shows that as government funds accumulated at the central bank, it effectively withdrew excess liquidity, tightening short-term money conditions. This trend also indicates improved fiscal discipline and revenue management, particularly through higher indirect tax collection and treasury inflows.

Furthermore, the surge in deposits coincides with the government’s ongoing efforts to strengthen fiscal buffers amid cautious spending patterns and uncertain economic recovery. While this may temporarily strain liquidity for the banking sector, it enhances the government’s ability to finance future capital projects and debt obligations.