KATHMANDU, Nov 17: The Nepal Rastra Bank (NRB) is set to mop Rs 50 billion to manage liquidity from the banking system. On Sunday, the central bank announced that it would withdraw Rs 50 billion for a period of 21 days through a deposit collection tool.
Since the beginning of the current fiscal year, the NRB has been continuously withdrawing liquidity through deposit collection tools and permanent deposit facilities due to excess liquidity in the banking system. To implement the interest rate corridor, the NRB has been consistently withdrawing liquidity to prevent the interbank interest rate from falling below 3 percent.
NRB to mop additional Rs 40 billion from banking system for liq...
The interest rate for the deposit collection tool will be determined through an auction. The principal and interest payment for this tool will be made public on December 8.
