Nepal Rastra Bank to Absorb Liquidity of NPR 50 Billion

Nepal Rastra Bank has decided to absorb NPR 50 billion from the market on Wednesday. Here are the key points:

1. Decision to Absorb Liquidity:

- This decision was made due to the recent excess liquidity in banks and financial institutions.

- NPR 50 billion will be absorbed for a period of 21 days.

2. Liquidity Absorption Process:

- The central bank has been absorbing liquidity through deposit collection instruments.

- Liquidity will be absorbed through a bidding process by the central bank.

3. Bidding and Application:

- Interested banks and financial institutions must submit their bids by 3 PM.

- The interest rate will be determined through the bidding process.

4. Bidding Limits:

- Banks and financial institutions can bid in multiples of NPR 10 million, with a minimum of NPR 10 million and a maximum of NPR 5 billion.

This step by Nepal Rastra Bank to absorb liquidity from the market is expected to contribute to financial stability. Interested banks and financial institutions are encouraged to apply promptly to take advantage of this opportunity.