नेपाल राष्ट्र बैंकद्वारा ४० अर्ब रुपैयाँ निक्षेप संकलनमार्फत अधिक तरलता व्यवस्थापन गर्ने निर्णयNepal Rastra Bank to Withdraw NPR 40 Billion Through Deposit Collection Instrument to Manage Excess Liquidity

The Nepal Rastra Bank has once again decided to withdraw NPR 40 billion from the banking system through a deposit collection instrument to manage excess liquidity. With credit demand remaining weak, liquidity in the financial system has accumulated significantly, prompting the central bank to absorb funds for a period of 160 days. Currently, banks and financial institutions are placing funds with the central bank at around a 3% interest rate. Under this open market operation, only licensed ‘A’, ‘B’, and ‘C’ class financial institutions will be eligible to participate through a competitive bidding process, where interest rates will be determined accordingly. Institutions can bid with a minimum amount of NPR 100 million, up to the total announced amount in specified multiples. The principal and interest of this instrument will be repaid on October 21. The central bank has been repeatedly using such tools to regulate long-term liquidity and stabilize market interest rates.