Kathmandu. The Nepal Rastra Bank (NRB) has been pulling money continuously due to the accumulation of excess liquidity in the banking system.
The central bank is drawing money from the banking system using deposit collection equipment. The central bank is to withdraw Rs 45 billion from the banking system through deposit collection on May 14. 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 Rastra Bank, the bidding for the collection will have to be done at interest rate and multi-bidding can also be done at multiple 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 payment of this 42-day deposit collection instrument will be made on June 26.
There is a liquidity crunch in the banking system as the demand for loans has not increased in the short term. Banks and financial institutions are forced to lend money to the central bank at an interest rate of around 3 percent.
