KATHMANDU, April 23: The Nepal Rastra Bank (NRB) is set to withdraw an additional Rs 35 billion in liquidity this Wednesday. With excess liquidity in the market, the central bank is using its deposit collection instrument to withdraw Rs 35 billion for a period of 21 days as part of its liquidity management efforts.
According to the notice issued on Wednesday, banks and financial institutions wishing to deposit funds with the NRB through the deposit collection instrument must participate in an online bidding process by 3 pm on Wednesday.
NRB to mop additional Rs 40 billion from banking system for liq...
The NRB has stated that bids can be placed in multiples of Rs 50 million, with a minimum bid amount of Rs 100 million, ensuring that any remaining amount will be disregarded. The bidding must be done based on interest rates, and multiple bids at different interest rates are also allowed. The principal and interest payment will be made on May 14.
The NRB has stated that only banks and financial institutions from categories 'A', 'B', and 'C' will be allowed to participate in the bidding process for the deposit collection instrument.
