Nepal Rastra Bank to Withdraw NPR 25 Billion from Market Again

Kathmandu – As banks and financial institutions experience excess liquidity, Nepal Rastra Bank (NRB) is set to withdraw NPR 25 billion from the market today (Sunday). The central bank will use a deposit collection instrument to manage liquidity, with the funds being absorbed for a period of 21 days.

NRB has invited banks and financial institutions to submit online bids by 3 PM today. According to the bank’s notice, bidding will be accepted in increments of a minimum of NPR 100 million and a maximum of NPR 500 million per bid. The bidding process must be based on interest rates, and multiple bids with different interest rates will also be allowed.

Only commercial banks (Class ‘A’), development banks (Class ‘B’), and finance companies (Class ‘C’) are eligible to participate in the bidding process. Additionally, the deposit collection instruments acquired through this process can be used as collateral in other financial institutions, as per the NRB’s notice.