To manage excess liquidity in the financial system, the Nepal Rastra Bank has announced plans to withdraw Rs. 50 billion from the market.
The central bank will absorb the amount for a period of 14 days through its deposit collection instrument. The bidding and issuance process is scheduled for Sunday (Chaitra 8), and interested banks and financial institutions must submit their bids online by 3 PM.
Only “A”, “B”, and “C” class banks and financial institutions will be eligible to participate in the bidding process.
The Nepal Rastra Bank has been using deposit collection tools to manage excess liquidity in the market. The principal and interest payments for this operation are set to be completed on Chaitra 22.
The interest rate will be determined through the bidding process. Participating institutions can bid a minimum of Rs. 100 million, with bids required in multiples of Rs. 50 million, up to the total announced amount.
The central bank also stated that allocation of the deposit collection amount will prioritize bids offering the lowest interest rates, distributing funds accordingly in ascending order.
