March 8: Deposit collections of banks have started increasing after they increased the interest rates by 10 percent on February 13. 

According to the Nepal Bankers Association, deposits of commercial banks have increased by Rs 11 billion from February 26 to March 4. On the other hand, the credit flow of banks has increased by only Rs 5 billion during this period. 

Earlier, deposit collection had increased by Rs 2 billion until February 25, while the credit flow had increased by Rs 10 billion. As per the association, the total deposits of commercial banks have reached Rs 4.32 trillion. Similarly, credit flow of banks has also reached Rs 4.17 trillion. 

While banks have collected Rs 110 billion in deposits till mid-February this year, credit flow during this time has been Rs 434 billion. Compared to the increase in deposits, credit flow has been higher and most of the credit has gone to unproductive sectors including imports, leading to lack of liquidity in banks and financial institutions.

The central bank had tightened imports of luxurious goods as well as gold and silver after excessive imports affected the country’s balance of payments and foreign exchange reserves.

Meanwhile, Nepal Rastra Bank is all set to circulate one-rupee coin from Wednesday. The central bank informed that visually impaired people can recognize this coin by feeling it.