KATHMANDU, March 19: Nepal Rastra Bank (NRB) is set to withdraw an additional Rs 25 billion from the banking system for liquidity management. On March 16, it had mopped Rs 40 billion from the banking system.
The NRB is going to withdraw Rs 25 billion for 21 days through the deposit collection instrument.
Interested banks and financial institutions can apply by 3 pm on Wednesday. Recently, deposits in banks and financial institutions have been increasing but the demand for loans has not been significant. As a result, the NRB has been absorbing liquidity through deposit collection instruments.
According to the NRB, banks and financial institutions have collected a total of Rs 6.762 trillion in deposits as of March 15, while they have been able to invest only about Rs 5.45 trillion in loans.