The Nepal Rastra Bank (NRB) is set to withdraw an additional Rs 35 billion in liquidity from the market this Wednesday as part of its ongoing efforts to manage excess liquidity. The central bank will use its deposit collection instrument for a 21-day period to absorb the surplus funds.
As per the notice issued on Wednesday, eligible banks and financial institutions must submit their bids through an online bidding process by 3 PM on the same day. Participation is limited to institutions classified under categories ‘A’, ‘B’, and ‘C’.
Bids must be placed in multiples of Rs 50 million, with a minimum bid of Rs 100 million. Any excess amount that does not meet this criterion will be disregarded. Bidding is based on interest rates, and institutions may submit multiple bids at different rates.
The principal and interest will be paid out on May 14.
