NRB to Withdraw Rs 30 Billion Liquidity Through Deposit Collection Instrument

Kathmandu — Nepal Rastra Bank (NRB) is set to absorb Rs 30 billion from the banking system on Wednesday as part of its ongoing effort to manage excess liquidity in the financial market. The central bank will utilize its deposit collection instrument, pulling funds out of the banking system once again.

According to NRB, the bidding will be conducted online only, starting at 3 PM on Wednesday. Banks and financial institutions willing to participate can submit bids ranging from a minimum of Rs 100 million, and thereafter in multiples of Rs 50 million, up to the total amount announced.

The bidding will take place on an interest-rate basis, with institutions allowed to submit multiple bids at different rates. Participation is limited to Class ‘A’, ‘B’, and ‘C’ banks and financial institutions.

The central bank further informed that the instrument carries a tenure of 42 days. The principal and interest will be settled on Poush 23.