The bank is issuing the repo to prevent a shortage of investment capital in banks and the financial systems. The repo will mature on October 19.
issues short-term repo if there is a liquidity shortage in the banking system.
Before this, NRB
had sent Rs 30 billion to market through repo. Banks and financial institutions use the repo, inter-bank lending, and Standing Liquidity Facility (SLF) in case of a liquidity crunch.