Nepal Rastra Bank to Withdraw Rs 90 Billion in Liquidity – Minimum Bid Rs 10 Crore, Maximum Multiples of Rs 5 Crore

Nepal Rastra Bank (NRB) continues to manage the growing liquidity within the country’s financial system. On Sunday, the central bank announced it will withdraw Rs 90 billion from the market through a Deposit Collection Instrument for 42 days.

Banks and financial institutions from categories ‘A’, ‘B’, and ‘C’ can participate in the online bidding process until 3 PM today. According to NRB, bids must be placed in multiples of Rs 5 crore, with a minimum bid amount of Rs 10 crore. The bidding will be conducted on an interest rate basis, and multiple bids at different interest rates will be accepted.

NRB has been regularly withdrawing excess liquidity every Sunday and Wednesday, but due to the Tihar holidays, the process was paused last week. The central bank resumed it today — the first working day after the festival — to absorb excess funds from the market.

Although this fiscal year began with expansionary fiscal and monetary policies aimed at boosting credit flow, loan demand has remained stagnant. Banks report that the Gen-Z protests on Bhadra 23–24 created economic uncertainty, leading to sluggish loan expansion and increasing deposits. As a result, liquidity has continued to accumulate in the financial system.