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 is set to withdraw Rs 120 billion from the banking system through deposit collection on April 24. The bidding for this will be held at 3 pm today, according to the Rastra Bank.
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 Rastra Bank, the bidding of deposit collection will have to 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 will be allowed to participate in the bidding of deposit collection equipment.
According to the NRB, the principal and interest of this 19-day deposit collection instrument will be paid on May 12.
There is a liquidity gap in the banking system due to the lack of demand for loans in recent times. Banks and financial institutions are forced to lend money to the central bank at an interest rate of around 3 percent.
