Nepal Rastra Bank to Withdraw Rs 150 Billion to Manage Excess Liquidity
Nepal Rastra Bank (NRB) will absorb Rs 150 billion from the banking system through its deposit collection instrument on Thursday to manage excess liquidity. The eight-day deposit collection will have its interest rate determined through a competitive bidding process.
Nepal Rastra Bank (NRB) is set to withdraw Rs 150 billion from the banking system on Thursday, Kartik 12, to manage excess liquidity in banks and financial institutions. The central bank will collect the funds through its deposit collection instrument as part of its ongoing efforts to regulate surplus liquidity in the financial system. According to NRB, the bidding process for the deposit collection instrument will remain open through the online bidding system until 3 p.m. today. The interest rate will be determined through the bidding process, and only Class ‘A’, ‘B’ and ‘C’ banks and financial institutions will be eligible to participate. The deposit collection instrument will have a maturity period of eight days. NRB has stated that the principal and interest will be repaid on Kartik 20, 2083. The central bank has been regularly using deposit collection instruments to absorb excess funds from the banking system. By temporarily collecting surplus liquidity, NRB aims to manage liquidity conditions and maintain stability in the financial system.