Cash Reserve Ratio (CRR) – Nepal 2024-25

Title
Cash Reserve Ratio (CRR) – Nepal 2024-25
Details

The Cash Reserve Ratio (CRR) is the minimum percentage of total deposits that commercial banks and financial institutions must maintain as cash reserves with the Nepal Rastra Bank (NRB).

  • Current CRR: $4.0%$ (applicable uniformly to Class 'A', 'B', and 'C' financial institutions).
  • Purpose: It is a key direct monetary tool used to control money supply, manage liquidity, and ensure depositor safety.
  • Impact: Keeping the CRR at $4.0%$ provides more investable funds to the banking system, helping to support economic growth and stabilize interest rates.
Category
Monetary Policy
Fiscal Year
2082
Key Figure/Rate
4.0%

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