Nepal Rashtra Bank Governor Dr. Tilak Rawal Tuesday night said the liquidity position of commercial banks was good in an effort to assure shaky investors and prevent a run on banks after government froze the sale and transfer of land Thursday ahead of a reduction on land ceiling.

The legality of the government decision has been challenged at the Supreme Court which will begin final hearings next Friday. Total liquidity of commercial banks and Nepal Rashtra Bank (NRB) is Rs.60 billion, Dr. Rawal told the Rashtriya Samachar Samiti. said. He asked depositors not to panic.

“The banking system is in order and the only problem with us is how to invest,” Dr. Rawal said. Depositors started heavy withdrawals after speculation the government will also freeze deposits.

The opposition RPP and NSP have been stalling parliament proceedings demanding a ceiling on property and not on land alone.