NRB to Withdraw NPR 60 Billion Liquidity from the Banking System

Kathmandu - With excessive liquidity in the banking system, Nepal Rastra Bank (NRB) has started continuously withdrawing liquidity. On Sunday, the central bank plans to withdraw NPR 60 billion from the banking system. NRB aims to absorb NPR 70 billion by issuing deposit collection instruments.

The accumulation of liquidity in banks has created challenges for NRB in managing the interest rate corridor. Despite providing Standing Liquidity Facility (SLF) to banks, the interbank interest rate has exceeded the desired range. To address this, NRB has decided to utilize deposit collection instruments to absorb the excess liquidity.

This liquidity management measure is expected to help balance the banking system's liquidity and stabilize interest rates.