Nepal Rastra Bank issued a one-year 'Nepal Rastra Bank Debt Bond 2084' worth Rs 25 billion on July 3, 2026, following a Rs 45 billion issuance on July 1, 2026, bringing the combined total to Rs 70 billion within three days. The bond issuances come as the banking system holds an estimated Rs 1.12 trillion in excess funds, with interest rates at low levels and loan demand remaining weak despite ample credit availability.
Former NRB Executive Director Nar Bahadur Thapa has described the situation as a paradox: excess liquidity coexists with sluggish credit uptake, pointing to structural constraints in the real economy rather than a financing shortage. Analysts and stakeholders have called for new monetary instruments to channel surplus funds more effectively into productive sectors.