KATHMANDU, March 23: Nepal Rastra Bank (NRB) has begun withdrawing liquidity worth Rs 20 billion from the banking system through deposit collection approach starting today.
The bank has announced that it will bid and issue deposit collection for 21 days, with the bidding time set for 3 pm today. While offering permanent deposit facilities at deposit collection rates, NRB is also mopping liquidity through this bidding process, with the principal and interest of the collected deposits to be paid on April 13.
Revised interest rate corridor system introduced
The interest rate for the deposit collection approach will be determined through the bidding process.
The minimum amount that can be bid is Rs 100 million, and the maximum is Rs 50 million, with the remaining amount allocated according to the total invited amount. Only banks and financial institutions classified as 'A', 'B', and 'C' by NRB will be allowed to participate in the bidding.