NRB to withdraw Rs 50 billion in liquidity management

KATHMANDU: Nepal Rastra Bank (NRB) is set to withdraw Rs 50 billion from the banking and financial sector due to excess liquidity.

The NRB will utilize a deposit collection instrument for this purpose, with the funds to be withdrawn for a 21-day period.

Banks and financial institutions have been invited to participate in the online bidding process for the deposit collection, which will close today at 3:00 PM.

Bids can be made in increments of Rs 10 million, with the total amount divisible by Rs 5 million.

NRB has indicated that bids can be made at a fixed or multiple interest rates.

Only ‘A’, ‘B’, and ‘C’ category banks and financial institutions are eligible to participate in this bidding process.

The purchased deposit collection instruments can be used as collateral with other banks and financial institutions.