Nepal Rastra Bank to Withdraw NPR 50 Billion from the Banking System Today

Nepal Rastra Bank (NRB) is set to withdraw NPR 50 billion from the banking system today. To manage excess liquidity, the central bank will use the deposit collection instrument to pull the money from the system. The bidding process for deposit collection will take place today at 3 PM.

Deposit Collection Instrument:

• The plan is to withdraw NPR 50 billion from the banking system.

Bidding Process:

• Banks and financial institutions willing to participate can place bids starting at a minimum of NPR 100 million, and the amount must be in multiples of NPR 50 million.

Interest Rates:

• The bidding will be conducted based on interest rates, allowing for multiple bids at various interest rates.

Participation:

• Only banks and financial institutions categorized as ‘A’, ‘B’, and ‘C’ can participate.

Payment Date:

• The deposit collection instrument will mature, and both principal and interest payments will be made on Ashwin 23 (7 days after the transaction).

NRB has been implementing these measures to manage liquidity, helping to maintain balance in the banking system.