Saving & Call Deposits Rise Rs. 77 Billion, Boosting Banking Stability

In a positive turn for Nepal’s financial system, saving and call deposits increased by Rs. 77 billion in August 2025, providing much-needed relief to the banking sector facing liquidity pressure. According to the Monetary Survey (Mid-August 2025) by Nepal Rastra Bank (NRB), total saving and call deposits climbed from Rs. 3.156 trillion in mid-July to Rs. 3.233 trillion in mid-August, representing a 2.4% monthly growth.

This rise comes at a time when demand deposits collapsed by Rs. 114 billion, meaning depositors are shifting their funds toward interest-bearing accounts instead of maintaining liquid balances. The move reflects a strategic adjustment by households and businesses seeking higher returns amid tighter monetary policy and rising lending rates.

Experts believe that this shift toward saving and call deposits has helped stabilize the banking system’s liquidity position, offsetting part of the pressure created by the decline in current account balances. Moreover, banks have been aggressively promoting fixed and saving deposit schemes with attractive interest rates to retain customer confidence.

While this increase strengthens short-term financial stability, it also signals that consumer spending and transaction-level liquidity are declining, which could slow economic activity in the coming months. The NRB’s latest data suggests that deposit mobilization trends are now favoring stability over liquidity, a pattern often seen when interest rates rise and inflation moderates.