NRB to withdraw Rs 25 billion from market today

KATHMANDU: Nepal Rastra Bank (NRB) is set to withdraw Rs 25 billion from the market today, Tuesday, due to excess liquidity in banks and financial institutions.

The withdrawal will be made through a deposit collection instrument for a period of 22 days.

Typically, the central bank has been withdrawing money from the market on Sundays and Wednesdays.

However, since tomorrow is a public holiday, the withdrawal will take place today.

Financial institutions have been invited to participate in online bidding until 3:00 PM today.

The bidding will be conducted in increments of Rs 5 million or more, with the remaining amount allocated accordingly.

The deposit collection will be at interest rates, and multi-interest bidding will also be allowed.

Only class ‘A’, ‘B’, and ‘C’ banks and financial institutions will be eligible to participate in the bidding.

The purchased deposit collection instruments can be used as collateral by other institutions as per the central bank’s notice.