Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, has decided to withdraw Rs 35 billion in a single day due to excess liquidity in the banking system.

The central bank is going to withdraw Rs 35 billion from the banking system using deposit collection equipment. Nepal Rastra Bank (NRB) has announced that the principal and interest will be paid on October 18 for the 4-day deposit collection instrument.

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.