NRB to withdraw Rs 40 billion amid excess liquidity in the market
The Rs 40 billion will be withdrawn through a deposit collection instrument, which is set to last for 21 days.
KATHMANDU: In response to the growing liquidity in the banking and financial sector, Nepal Rastra Bank (NRB) has announced plans to withdraw Rs 40 billion from the market this Sunday.
This marks another instance of NRB’s ongoing efforts to manage excess liquidity, as the central bank has been withdrawing funds twice a week, on Sundays and Wednesdays.
The Rs 40 billion will be withdrawn through a deposit collection instrument, which is set to last for 21 days.
NRB has issued a public notice inviting banks and financial institutions to participate in the online bidding process, which will be open until 3 PM today.
The participating institutions can bid for amounts ranging from a minimum of Rs 10 million to a maximum of Rs 50 million, with any remaining funds to be allocated accordingly.
Additionally, NRB has clarified that the bidding process will be conducted with an interest rate, and multiple bids can be submitted.
Only Category ‘A’, ‘B’, and ‘C’ banks and financial institutions will be eligible to take part in this deposit collection process.
The instruments acquired through this scheme can also be used as collateral for borrowing from other banks and financial institutions, as per NRB’s guidelines.
