NRB to withdraw Rs 2.5 billion to manage excess liquidity
The bank has called upon financial institutions to participate in an online bidding process by 3 p.m. today.
KATHMANDU: The central bank of Nepal, Nepal Rastra Bank (NRB), has announced that it will withdraw Rs 2.5 billion (25 billion rupees) from the banking and financial system today, Wednesday, to manage excess liquidity.
To regulate liquidity, NRB will use a deposit collection instrument, through which this amount will be withdrawn for a 21-day period.
The bank has called upon financial institutions to participate in an online bidding process by 3 p.m. today.
Bids can be placed with a minimum of Rs 10 million and a maximum of Rs 50 million, with any remaining amounts being allocated accordingly.
The deposit collection bidding will be conducted at a specified interest rate, with the option for multiple interest rates in the bidding process.
Only banks and financial institutions from categories ‘A’, ‘B’, and ‘C’ are eligible to participate in the bidding, according to NRB’s notice.
The deposit collection in
struments purchased through this process can also be used as collateral by the participating banks and financial institutions.
