Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Rastra Bank (NRB) is set to withdraw Rs 90 billion from the financial system today, Wednesday, to manage surplus liquidity, marking its latest effort to stabilize the market. Using the deposit collection instrument, the central bank will absorb the funds for a 35-day period, continuing a practice of conducting such operations at least twice weekly amid persistent excess cash in the system.
The NRB has invited banks and financial institutions to participate in an online auction, with bids accepted until 3:00 PM today. The auction allows minimum bids of Rs 10 crore, with increments of Rs 5 crore, ensuring no residual amounts, as outlined in the bank’s notice. Bids can be submitted at multiple interest rates, offering flexibility to participants, though only ‘A’, ‘B’, and ‘C’ category banks and financial institutions are eligible.
The collected deposits can also be used as collateral by participating institutions for transactions with other banks, the NRB added. This move reflects ongoing efforts to regulate liquidity, which has remained high despite subdued lending activity, as the central bank seeks to maintain economic balance.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
