Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has decided to withdraw money using deposit collection tools after excess liquidity accumulated in the banking system.
The central bank of Nepal (NRB) is to withdraw Rs 40 billion from the banking system through deposit collection on April 29. According to the NRB, the bidding will take place at 3 pm today.
Banks and financial institutions can bid for a minimum of Rs 10 crore and a maximum of Rs 5 crore dividing the total amount of the total call amount.
According to the Nepal Rastra Bank, the bidding for deposit collection should be done at interest rate and multi-bidding can also be done at multi-interest rate. Only ‘A’, ‘B’ and ‘C’ class banks and financial institutions are eligible to participate in the bidding process.
According to Rastra Bank, the principal and interest of this 49-day deposit collection instrument will be paid on June 17.
There has been a liquidity crunch in the banking system as the demand for loans has not increased in recent times. Banks and financial institutions are forced to lend money to the central bank at an interest rate of around 3 percent.
