KATHMANDU, June 9: Nepal Rastra Bank (NRB) has mopped Rs 30 billion from the market on Sunday. The central bank decided to take this measure due to the accumulation of excess liquidity in the financial system.
Using the deposit collection equipment, NRB previously absorbed Rs 40 billion on Thursday and Rs 12.15 billion last Friday. The decision to mop funds comes as the interbank rate fell below three percent. According to NRB regulations, when the interbank rate goes below three percent, the central bank absorbs money from the market, and when it exceeds seven percent, it injects money into the market.
Revised interest rate corridor system introduced
Commercial banks, development banks, and finance companies were eligible to participate in the bidding process opened by the central bank until 12 noon on Sunday.