Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has decided to pull in Rs 70 billion from the banking system.

The central bank is going to withdraw Rs 70 billion from the banking system using deposit collection equipment. The Nepal Rastra Bank (NRB) has announced that it will pay the principal and interest on the 7-day deposit collection instrument on September 28.

The interest rate will be determined through bidding. It can be used as collateral in banks and financial institutions other than the Nepal Rastra Bank.

Banks and financial institutions willing to issue a minimum of Rs 10 crore and a maximum of Rs 5 crore will be dividing the total amount of the total call amount. According to the NRB, the bidding will take place at 3 pm today.

Deposit collection will be bid at interest rate. Also, multiple bidders can be done at multiple interest rates. Only ‘A’, ‘B’ and ‘C’ class banks and financial institutions are allowed to participate in the bidding process.