Banking Khabar / The Nepal Rastra Bank is set to withdraw NPR 120 billion from the market today to manage excess liquidity in the banking system. The central bank will collect the amount for 97 days through a deposit collection instrument under its short-term monetary tools.
According to the central bank, interested banks and financial institutions can participate in the bidding process through an online system until 3:00 PM today. Applications can be submitted in multiples of NPR 50 million, with a minimum bid of NPR 100 million and up to the total announced amount.
Licensed Class ‘A’, ‘B’, and ‘C’ banks and financial institutions are eligible to participate in the deposit collection process. The central bank has stated that both the principal and interest payments for the collected amount will be made on Shrawan 20.
The central bank regularly uses such monetary instruments to maintain liquidity balance in the banking system and ensure monetary stability.
