Nepal Rastra Bank Releases Detailed Report on Standing Deposit Facility Transactions Till Magh 4, 2082

Kathmandu, Nepal — The Monetary Management Department of Nepal Rastra Bank (NRB) has published a comprehensive report detailing the use of the Standing Deposit Facility (SDF) up to the end of Magh 2082. According to the report, a total of 125 SDF transactions have been carried out, amounting to an aggregate of NPR 1,709.51 billion (Rs. 1709.51 Crores).

The Standing Deposit Facility is a monetary policy tool that allows commercial banks to deposit their excess liquidity with the central bank for a short-term period at a fixed interest rate. This mechanism is crucial in managing liquidity in the banking system, particularly during periods of excess money supply.

From the beginning of the fiscal year 2081/82, the volume of SDF transactions shows a dynamic trend. On the very first day of the period (Baisakh 1, 2081), 35 institutions parked a total of NPR 37.22 billion in overnight deposits at NRB. Over time, the volume of such deposits showed a declining pattern, reflecting adjustments in market liquidity and policy responses.

By the latest recorded transaction on Magh 4, 2082, 31 transactions had taken place on that single day, with a combined deposit volume of NPR 16.91 billion.

These SDF operations are significant for ensuring interest rate stability, absorbing surplus liquidity, and guiding short-term money market rates. They demonstrate NRB’s active role in maintaining financial system equilibrium and minimizing inflationary pressures that could result from excess liquidity.