NRB to withdraw Rs 25 billion to manage excess liquidity in banks

KATHMANDU: The Nepal Rastra Bank (NRB) is set to withdraw Rs 25 billion from the market again today, Sunday, as the liquidity in banks and financial institutions reaches an excess.

The NRB plans to use a deposit collection tool to manage this surplus liquidity, with a maturity period of 21 days.

The central bank has called upon banks and financial institutions to participate in an online bidding process, which will be open until 3 PM today.

Bids can range from a minimum of Rs 10 million to a maximum of Rs 500 million, with any remaining amounts allocated accordingly, as per the Rastra Bank’s notice.

The bidding process must be conducted at the prevailing interest rate, and multiple bids can be placed under the variable interest rate structure.

Only banks and financial institutions classified under categories ‘A’, ‘B’, and ‘C’ are eligible to participate in this process.

The deposits purchased through the collection tool can also be used as collateral by the participating banks and financial institutions.