Nepal Rastra Bank to Withdraw NPR 30 Billion to Manage Excess Liquidity

Nepal’s central bank, Nepal Rastra Bank, has decided to withdraw NPR 30 billion from the banking system by using a deposit collection instrument due to excess liquidity. According to the bank, bidding for this instrument will be held today (Sunday) at 3:00 PM. Interested banks and financial institutions can participate with a minimum bid of NPR 100 million, and bids must be in multiples of NPR 50 million up to the total announced amount. The bidding will be conducted on an interest rate basis, with provisions for multiple bids at different rates. Only Class ‘A’, ‘B’, and ‘C’ financial institutions are eligible to participate. The 87-day deposit collection instrument will mature on Jestha 6, 2083 (BS), on which both principal and interest will be paid.