Interbank Rate Movement Nepal 2026
The interbank lending rate is a key indicator of liquidity conditions in Nepal's banking system. NRB data for FY 2025/26 shows the weighted average interbank rate moving from 2.75% in August 2025 to 3.0% by March 2026.
Monthly Interbank Rate (Weighted Average, 2025/26)
| Month | Among CBs | Overall BFIs |
|---|---|---|
| Aug 2025 | 2.75% | 2.75% |
| Sep | 2.75% | 2.75% |
| Oct | 2.75% | 2.58% |
| Nov | 2.75% | 2.75% |
| Dec | 2.74% | 2.74% |
| Jan 2026 | 2.75% | 3.00% |
| Feb | 2.75% | 3.00% |
| Mar | 2.69% | 3.00% |
Interbank Transaction Volumes
Monthly interbank transaction amounts varied significantly:
- August: Rs. 87,490M (low volume — ample individual bank liquidity)
- September: Rs. 110,600M
- January: Rs. 51,700M (lowest — year-end effects)
- February: Rs. 163,450M (highest — liquidity redistribution after NRB rate hike)
- March: Rs. 69,850M
What the Interbank Rate Tells Us
The interbank rate consistently traded below the NRB repo rate (4.5-5.0%) throughout the period, indicating:
- Banks had adequate liquidity and didn't need to borrow from NRB's repo facility
- The rate corridor (deposit collection rate to repo rate) was functioning normally
- No bank-specific liquidity stress — all institutions could fund themselves in the interbank market
Comparison with Previous Years
The current 2.75-3.0% range is historically low. In FY 2022/23, interbank rates touched 5-6% during a liquidity crunch. The current stability reflects abundant remittance-driven system liquidity.
Conclusion
Nepal's interbank market is functioning smoothly with rates at 2.75-3.0%. The stability indicates healthy liquidity conditions across the banking system, supported by strong remittance inflows. The February volume spike (Rs. 163,450M) suggests some redistribution adjustments after the NRB rate hike, but no signs of stress.