Liquidity Mopping: Nepal Rastra Bank to Absorb Another Rs 60 Billion From Banking System Today
In a bid to manage excessive liquidity lingering within the financial sector, Nepal Rastra Bank (NRB) has announced a bidding window today to scoop up Rs 60 billion through a 23-day deposit collection instrument.
Nepal Rastra Bank (NRB) has announced a further intervention to draw ₨ 60 billion out of the domestic banking system today, responding to a prolonged buildup of excess liquidity. The central bank is scheduled to open bidding for a 23-day deposit collection instrument at 3:00 PM. According to the NRB, the bidding will follow an interest-rate-centric mechanism where 'A', 'B', and 'C' class financial institutions can submit multiple bids under a multi-interest rate structure. Eligible institutions can bid for a minimum of ₨ 100 million, with the maximum capped at the total called amount, provided increments are divisible by ₨ 50 million. The principal and accrued interest for this liquidity-absorbing measure are slated for repayment on Ashar 19 (July 3).