Kathmandu. Nepal Rastra Bank (NRB) has decided to withdraw Rs 50 billion for 63 days for the first time due to excessive liquidity in the banking system. Earlier, the central bank had infused liquidity for a maximum period of 42 days.
The central bank is going to draw liquidity from the banking system again today. In order to manage more liquidity, the central bank is pulling money from the banking system through deposit collection tools.
Banks and financial institutions that want to make deposits can bid up to the total call amount by dividing it by a minimum of Rs 100 million and a maximum of Rs 50 million.
According to the Rastra Bank, deposit collection will have to be bid at interest rates and multiple bids can also be made at multiple interest rates. Only ‘A’, ‘B’ and ‘C’ category banks and financial institutions will be allowed to participate in the bidding of deposit collection equipment.
According to the Rastra Bank, the principal and interest of this deposit collection device will be paid on September 15.
In recent times, there has been a liquidity crisis in the banking system due to lack of demand for credit. Banks and financial institutions are being forced to give money to the central bank at an interest rate of around 3 percent.
