Nepal Rastra Bank to withdraw Rs 20 billion to manage excess liquidity

Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is to withdraw Rs 20 billion from the market again after the excess liquidity accumulated in the banking system.

The central bank has called for bidding through the deposit collection tool on March 1. According to the Nepal Rastra Bank, the bidding for the same will take place at 3 pm today.

Interested banks and financial institutions can place bids up to a minimum of Rs 100 million and up to Rs 50 million. According to the Rastra Bank, the bidding for deposit collection should be done at interest rate and multi-bidding can also be done at multiple interest rates.

Only the banks and financial institutions of ‘A’, ‘B’ and ‘C’ class can participate in the bidding. Nepal Rastra Bank (NRB) is going to withdraw money through the deposit collection tool for a period of 28 days.

According to the central bank, the principal and interest of the deposit collection equipment will be paid on April 29.