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 is to withdraw Rs 30 billion from the banking system through deposit collection on February 24. 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 the NRB, the principal and interest will be paid on May 20, 2083 for this 87-day deposit collection instrument.
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.
