Central Bank withdrawing 40 billion rupees to Tackle Excess Liquidity

Banking Khabar / In a move to manage surplus liquidity in the banking system, Nepal Rastra Bank has announced it will withdraw NPR 40 billion from the market today.

The Central Bank plans to collect the amount through a deposit collection instrument under its short-term monetary operations, with a maturity period of 168 days. This step is aimed at stabilizing liquidity conditions and maintaining monetary balance in the financial system.

According to the bank, interested financial institutions can participate in the process through an online bidding system until 3:00 PM today. Applications must be submitted in multiples of NPR 50 million, with a minimum bid of NPR 100 million and up to the total announced amount.

Participation is open to licensed ‘Class A’, ‘Class B’, and ‘Class C’ banks and financial institutions approved by the central bank. The principal and interest on the collected deposits will be repaid on October 7, 2026 (Ashoj 21, 2083).

Nepal Rastra Bank has stated that it regularly uses such monetary tools to maintain liquidity balance in the banking system and ensure overall financial stability.