KATHMANDU, March 30: The Nepal Rastra Bank (NEB) is set to withdraw Rs 25 billion from the banking system. After an increase in liquidity in the market, the NRB will begin withdrawing the equivalent amount of liquidity today through a deposit collection instrument.
The bank has announced that it will bid and issue deposit collection instruments for 21 days. The bank has set the bidding time for 3 pm today.
NRB to mop Rs 100 billion from BFIs
The NRB, which has provided a permanent deposit facility at the deposit collection rate, is also withdrawing liquidity through the deposit collection instrument.
The interest rate for the deposit collection instrument will be determined through bidding. The amount that can be bid will be divided by a minimum of 100 million and a maximum of Rs 50 million, up to the total amount called, leaving the remainder. Banks and financial institutions classified as 'A', 'B', and 'C' by NRB will be allowed to participate in the bidding.