Kathmandu. More liquidity has accumulated in the banking system as credit flow has not picked up pace. Nepal Rastra Bank (NRB) has been continuously withdrawing money from the banking system using deposit collection tools to manage excess liquidity.
The central bank has again bid to withdraw Rs 40 billion from the banking system at one go. It is for 42 days.
The banks and financial institutions participating in the bidding bidding amounted to Rs 66.25 billion. Which is 1.65 times more than what the Rastra Bank is trying to pull.
Today, 27 banks and financial institutions have applied for the amount through 43 bids. Rastra Bank has withdrawn only Rs 40 billion through bidding. The average interest rate is 2.9 percent.
Now, the bank will get back from the Rastra Bank by adding 2.9 percent interest to the amount kept by it on July 15.
