Nepal Rastra Bank to Withdraw Rs. 30 Billion from Market to Manage Excess Liquidity

Nepal Rastra Bank (NRB) is set to withdraw Rs. 30 billion from the financial system today (Sunday) to manage excess liquidity in the market. The central bank announced that the withdrawal will be conducted through a deposit collection auction for a period of 84 days. This follows last week’s liquidity withdrawal of Rs. 40 billion for 175 days.

According to the NRB notice, banks and financial institutions willing to participate in the deposit collection auction can submit their online bids by 2:00 PM today. Only “A,” “B,” and “C” class banks and financial institutions are eligible to participate in the auction. The purchased deposit collection instruments can be used as collateral with other banks and financial institutions.

The notice further mentions that bids can be placed in multiples of Rs. 5 crore, with a minimum of Rs. 10 crore, ensuring no remainder. The auction will be conducted on an interest-rate basis, and multiple bids at different rates are allowed under the multi-rate system.