Nepal Rastra Bank (NRB) is set to absorb Rs 70 billion from the banking system to address excess liquidity.
The central bank announced its plan to withdraw this amount through an auction of deposit collection instruments. The interest rate for the 21-day deposit instrument will be determined through competitive bidding.
The NRB has specified that both principal and interest payments for the auction, scheduled for Sunday, will be settled on January 19, 2025.
Since the start of the current fiscal year, NRB has been actively managing surplus liquidity in the banking system, employing various monetary tools to stabilize the financial market.
