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NRB to withdraw Rs 90 billion liquidity from banking system

. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is set to raise deposits of Rs 90 billion from the market to manage liquidity in the banking system. Nepal Rastra Bank (NRB) is going to withdraw the amount from the banking system for 119 days on Wednesday.

Earlier, the central bank had absorbed Rs 85 billion in liquidity on August 19.TAG_OPEN_div_14 After seeing more liquidity in the system, a large amount of money is being pulled from the market again in a short period of time.

According to the Rastra Bank, the interest rate of deposit collection will be determined through bidding.TAG_OPEN_div_12 The principal and interest of the collected amount will be paid on December 22.

Banks and financial institutions participating in the deposit collection can bid for a minimum of Rs 10 crore.TAG_OPEN_div_10 The maximum amount will be up to Rs 90 billion. The bidders will have to apply only for the amount to be divided by Rs 5 crore.

The last date for application can be done by 3:00 pm on Wednesday for the licensed banks and financial institutions of class ‘A’, ‘B’ and ‘C’.TAG_OPEN_div_8 According to the NRB, the bidding process will be conducted through online bidding system software.

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