With excess liquidity accumulating in the banking system, Nepal Rastra Bank plans to withdraw Rs. 40 Arba from the system today, Falgun 5, using its deposit collection instrument.
According to the central bank, the auction will be conducted at 3:00 PM, and participating banks and financial institutions can bid in multiples of Rs. 10 crore up to a maximum of Rs. 5 crore, with any remaining amount adjusted to reach the total announced amount. While the bidding will be based on interest rates, multiple-rate bids are also allowed. Only banks and financial institutions classified under categories ‘A’, ‘B’, and ‘C’ are eligible to participate.
The 89-day deposit collection instrument will mature on Jestha 3, 2083, when the principal and interest will be repaid. Recently, due to stagnant loan demand, liquidity in the banking system has surged, forcing banks and financial institutions to deposit funds with the central bank at interest rates around 3%.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
