In response to the ongoing economic slowdown, Nepal Rastra Bank (NRB) is set to collect an additional Rs 60 billion from the banking system to manage liquidity. With a lack of demand for loans and investments in the market, excess funds have accumulated in banks, prompting the NRB to take action.
This move involves collecting Rs 60 billion through a 21-day deposit collection instrument, with bidding set to occur online. Only banks and financial institutions from categories ‘A,’ ‘B,’ and ‘C’ will be eligible to participate. The bidding system will allow for amounts divisible by a minimum of Rs 100 million and a maximum of Rs 50 million. The principal and interest from this collection will be paid on January 12.
Priority in the bidding process will be given to the lowest interest rates, ensuring a gradual distribution of funds. This step is part of NRB’s ongoing efforts to regulate liquidity in the banking system as the country’s economic challenges persist.
