About Rs 76 billion have been withdrawn from the banks during Dashain. The exchange of new paper notes and economic activities contributed to the huge cash flow during the country’s largest festive and holiday season.
Before Dashain, the cash circulation which was around 6 trillion 20 billion on October 16, reached 6 trillion 96 billion at the end of Dashain. Gunakar Bhatt said.
Before Dashain till Ashoj 16, around 6.20 trillion cash was in circulation but after Dashain concluded, Rs 6.96 trillion went into circulation, Nepal Rastra Bank (NRB) spokesman Gunakar Bhatta shared. He also said that the amount would take some time to return to the banking system. However, Bhatta couldn’t share the exact denomination exchange details. Also read: Nepal Rastra Bank Calls for Digital Wallets Merger
Paper note exchange contributed
The tradition of offering newly printed notes contributed to this huge cash circulation during the Dashain. Nepal Rastra Bank arranges for not exchanges during the country’s biggest festival. This year too, many Rs 5, Rs 10, Rs 20, Rs 50, and Rs 100 notes were placed up for exchange. Nepalese use newly printed paper notes for Dakshina and puja in Dashain. Besides, people withdraw money for shopping and traveling during this festival time. NRB has consistently requested that the public use digital payments during the festivals, however, the affinity with brand-new notes is nowhere to wash away anytime soon.
Dashain has concluded but Tihar and Chhath are fast approaching so the cash-in-circulation will take time to return to the banking system. Bhatta says that this could take time till Mangsir, however, he adds that the large sum of the amount will return to the banking system within two months. Don’t miss: NRB Brings Money Shredder To Destroy Old Banknotes
Nepal suffered from a liquidation crisis in recent months however that has been largely restored. As banks are offering attractive interest rates on deposits, more banked citizens prefer to keep their money instead of withdrawing. So, soon banks will fill their cash reserves when the festivities end.
