Nepal Rastra Bank to Withdraw Another NPR 25 Billion for Liquidity Management

In response to the significant increase in investable funds within banks and financial institutions, Nepal Rastra Bank (NRB) has decided to withdraw an additional NPR 25 billion to manage liquidity. This decision follows a previous withdrawal of NPR 50 billion just three days ago.

Need for Liquidity Management:

• Due to the excessive increase in investable funds in banks and financial institutions, NRB has taken steps to manage liquidity by pulling funds from the banking system.

NPR 25 Billion Deposit Collection:

• On Wednesday, NRB plans to withdraw NPR 25 billion through its deposit collection tool from the banking system.

Deposit Bidding:

• Interested banks can apply for at least NPR 100 million, with increments of NPR 50 million, up to the total requested amount.

Application Deadline:

• Banks and financial institutions can submit their bids online until 3:00 PM on Ashwin 2 (September 18).

Nepal Rastra Bank is continuing its efforts to balance the excess liquidity in the banking system through these liquidity management measures. This step is expected to contribute to market balance and financial stability.