Kathmandu. Nepal Rastra Bank (NRB) is pulling deposits of Rs 45 billion on Friday. The Nepal Rastra Bank (NRB) is again withdrawing deposits through bidding for 42 days due to excess liquidity.

The bank has been drawing liquidity through deposit collection instruments and permanent deposit facilities for higher liquidity and interest rate management in the financial system.  Only the ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by the Nepal Rastra Bank are eligible to participate in the bidding.

While allocating the long-term deposit collection amount, the lowest rate of bidding will be done according to the interest rate bid by the counter parties and the amount called will be gradually allocated in order of priority.

According to the Rastra Bank, the bidding will be done through the online purchase system today and the interest rate will be determined through bidding and the principal and interest of the deposit collection equipment to be bid today will be paid on July 25, 2083. The minimum bidding amount will be Rs 10 crore and the maximum amount will be divided by Rs 5 crore.

Particularly, according to the central bank’s procedure on open market transactions, the Transaction Operation Committee can use long-term deposit collection instruments for a maximum period of 6 months under the structured open market transactions on any day as per the need to manage the market interest rate by managing the long-term liquidity situation in the financial market. Based on this provision, the central bank has been using deposit collection tools from time to time.