Nepal Rastra Bank to Withdraw Rs 40 Billion from the Banking System Today Amid Excess Liquidity

Kathmandu: The Nepal Rastra Bank has announced that it will withdraw Rs 40 billion from the banking system today through a deposit collection instrument after excess liquidity increased in the market. The central bank has fixed 3:00 PM today as the bidding time for a 21-day deposit collection. Banks and financial institutions can participate by quoting the amount they want to deposit—starting from a minimum of Rs 100 million and in multiples of Rs 50 million—along with the interest rate (up to four decimal points). According to the central bank, both the principal and interest will be repaid on Baisakh 2. Only licensed Class ‘A’, ‘B’, and ‘C’ banks and financial institutions will be allowed to participate in the bidding.