CURRENT AFFAIRS

Detailed explanation-1: -Kathmandu: The Reserve Bank of India (RBI) has agreed to provide ₹ 1 billion to the Nepal Rastra Bank (NRB) after its request that the country was facing a shortage of Indian currency in 100 denomination banknotes.

Detailed explanation-2: -Accordingly, the bank rate has been increased to 8.5 percent, the policy rate to 7.0 percent, and the deposit collection rate to 5.5 percent.

Detailed explanation-3: -The Cash Reserve Ratio (CRR), which is the minimum cash that BFIs must maintain as deposit at NRB, has been increased from 3% to 4% of the total deposit base of a bank.

Detailed explanation-4: -Nepal Rastra Bank (NRB), the Central Bank of Nepal, was established in 1956 under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilities including guiding the development of the embryonic domestic financial sector.

Detailed explanation-5: -For this purpose, the NRB had set up the Note Department in September 1956 which was renamed as the Currency Management Department in November 2002. Since taking over the responsibility of issuing the currency notes, the NRB has issued notes in denominations of Rs. 1, 2, 5, 10, 20, 25, 50, 100, 250, 500 and 1000.