Nepal, May 28 -- Banks and Financial Institutions (BFIs) are now required to maintain a minimum of 90 percent of the mandatory cash reserve on a daily basis.

Starting from June 1, banks and financial institutions must keep at least 90 percent of 4 percent of their total deposit liabilities as mandatory cash reserves with the Nepal Rastra Bank (NRB).

On Wednesday, the NRB issued a circular directing banks and financial institutions to maintain this minimum daily balance. Previously, the requirement was to keep at least 70 percent of the mandatory cash reserve daily with the central bank.

Additionally, the risk weight for share-collateralized loans has been fixed at 100 percent. Earlier, the risk weight for share-collateral loans exceedi...