KATHMANDU, April 20: Nepal Rastra Bank (NRB) is set to mop Rs 30 billion from the market on Sunday as part of its liquidity management strategy. The central bank is using the deposit collection instrument for a 21-day period to manage excess liquidity in the banking system.
According to a notice issued by NRB, banks and financial institutions interested in placing deposits through the deposit collection instrument must submit their online bids by 3 pm on Sunday.
NRB to mop additional Rs 40 billion from banking system for liq...
The central bank stated that bids can be submitted in multiples of at least Rs 100 million and at most Rs 50 million, with any remaining amount being non-allocable.
The bidding must be done at interest rates, and multiple bids at different interest rates are allowed. The principal and interest payment will be made on May 11.
Only Class 'A', 'B', and 'C' banks and financial institutions are eligible to participate in the bidding for the deposit collection instrument. The NRB has also stated that the purchased deposit collection
