December 21, 2001
KATHMANDU: The Nepal Rashtra Bank Thursday lowered the cash reserve ratio (CRR) for commercial banks by one percent to increase liquidity. Governor Dr. Tilak Rawal made the announcement in a move to propel a sagging economy.
The CRR for the current account has been cut to seven from eight percent, saving accounts from eight to seven percent and fixed account from six to 4.5 percent. Three percent of the total national deposit liabilities has been maintained.
Refinancing rate for export has been halved from four to two percent while refinancing loan for sick industries has been cut from 4.5 to three percent. The move in expected to release Rs.2 billion into the market.