A Rs 20 billion repurchase agreement (repo) is being issued by the Nepal Rastra Bank (NRB) today.
The repository will reach maturity on December 8. The repo is being issued by the bank in order to prevent a lack of investment capital in banks and financial institutions in the future.
If there is a shortfall of liquidity in the banking system, the central banks will issue repo loans. The central bank has been issuing repos on a continual basis for a long period of time in order to alleviate the liquidity bottleneck that has gripped the banking system.
The National Reserve Bank of India (NRB) issued a repo for Rs 20 billion on November 11. According to the central bank, banks and financial institutions belonging to the “A,” “B,” and “C” classes would purchase the repo through a bidding process.