Nepal Rastra Bank (NRB) has announced plans to withdraw NPR 5 billion from the banking system through a deposit collection instrument to manage the excess liquidity. The auction process for this operation will be conducted today, Sawan 11, at 3 PM.
Due to high liquidity in the banking sector, NRB has been regularly using deposit collection tools to absorb surplus funds. The recent low demand for loans has led to excess liquidity, forcing banks and financial institutions to deposit money with NRB at low interest rates—around 3 percent.
Participating banks and financial institutions willing to deposit funds must bid in multiples of NPR 10 crore, with a maximum limit set in multiples of NPR 5 crore. Partial acceptance will be granted if bids exceed the total offered amount. Bidding can be made at multiple interest rates, but only banks and financial institutions classified as ‘A’, ‘B’, and ‘C’ categories are eligible to participate.
This is a 28-day deposit collection, with principal and interest scheduled for payment on Bhadra 8, according to NRB.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
