Country is likely to face shortage of banknotes by the end of October, immediately after Dashain festival, according to Nepal Rastra Bank (NRB) officials.

Acting NRB Governor Krishna Bahadur Manandhar told the Finance Committee of the legislative parliament on Monday that banknotes would be in short supply after Dashain festival (October 21) if the absence of the Governor, who signs banknotes, draws out for a long time.

He said the exiting stock of banknotes will sustain the demand until Dashain, the most extravagant festival in Nepal.

Since printing of banknotes is a time-consuming process, timely steps should be taken to ward off the possible crisis, he added.

Manandhar was appointed Acting Governor of the central bank a week ago after the suspension of Governor Bijay Nath Bhattarai, who is facing corruption charges.

Bhattarai was suspended after the Commission for Investigation of Abuse of Authority (CIAA) filed a case against him on June 29. He has been released on bail.