Nepal Rastra Bank (NRB) has announced plans to invest Rs 1.2 billion in banks and financial institutions (BFIs)through funds mobilised from the Employees’ Security Fund, aiming to support liquidity and strengthen financial sector stability.
According to the central bank, the investment decision is part of broader efforts to ensure adequate liquidity in the banking system while promoting sustainable economic growth. The funds will be channelled into selected BFIs in line with existing regulatory frameworks and risk-management guidelines.
NRB officials stated that the move is expected to ease short-term liquidity pressures faced by financial institutions and improve their capacity to extend credit to productive sectors of the economy. The investment is also intended to safeguard employees’ savings while generating stable returns through regulated financial channels.
The central bank has emphasized that close monitoring mechanisms will be in place to ensure transparency and effective utilisation of the funds. Financial analysts believe the investment could provide timely support to the banking sector, especially as economic activity gradually picks up and demand for loans increases.
This initiative reflects Nepal Rastra Bank’s continued focus on maintaining financial stability, boosting confidence in the banking system, and supporting overall economic recovery through targeted policy measures.