KATHMANDU: Nepal Rastra Bank (NRB) has said it will provide the remaining Rs 42 billion to the government after allocating the required amount across its designated reserves.
In its clarification on Friday, the central bank stated that it has already transferred a significant portion of the government’s demand while maintaining the statutory and internal reserve requirements mandated by Nepal Rastra Bank Act.
According to NRB, the government had sought a total of Rs 49.23 billion in dividends and reserves. Of this, the central bank has already released funds to the government from its available profit pool. The bank said it has now completed the allocation of the mandatory reserves—including general reserve, monetary liability reserve, exchange equalization reserve, and other technical reserves—required to ensure financial stability.
“After allocating necessary funds across all reserve categories, the bank has decided to provide the remaining Rs 42 billion to the Government of Nepal,” NRB said in a statement.
The clarification comes amid debate inside the government over delays in the transfer of surplus funds from NRB. Officials from the Ministry of Finance had earlier expressed concern that the late transfer was affecting cash flow and budget implementation.
NRB, however, defended its timeline, stating that reserve management and annual calculations must be completed before any final transfer can be made. It also emphasized that premature withdrawal of funds could create risks for monetary management, liquidity stability, and external sector buffer requirements.
The central bank added that the process of releasing the remaining amount to the government has already begun and will be completed within the stipulated timeframe.
With the decision to hand over Rs 42 billion, the government expects relief in managing ongoing expenditure commitments, including provincial transfers, capital projects, and regular administrative obligations.
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