NRB withdrawing Rs 35 billion from market today

KATHMANDU: Nepal Rastra Bank (NRB) has announced that it will withdraw Rs 35 billion from the market today, Wednesday, through its deposit collection instrument.

According to an official notice issued by the central bank, the funds will be withdrawn for a period of 21 days, and eligible banks and financial institutions have been invited to participate in the online bidding process by 3 PM today.

The central bank has cited excessive liquidity in the financial system as the reason behind this move, aiming to bring the money supply to a balanced level through monetary tightening measures.

For the past one and a half years, NRB has been conducting regular liquidity absorption operations twice a week—on Sundays and Wednesdays—using its deposit collection tool.

As per the notice, interested banks and financial institutions can bid with a minimum of Rs 100 million and a maximum of Rs 5 billion.

In cases where bids are oversubscribed, allotment will be made on a pro-rata basis.