Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is set to collect deposits worth Rs 70 billion to manage excess liquidity in the banking system. The central bank is going to withdraw the amount through the banking system through the deposit collection device on June 26. The auction will be held at 3:00 pm today.

According to the NRB, the banks and financial institutions willing to provide deposits can bid for a minimum of Rs 100 million to a maximum of Rs 50 million.

Deposit collection will be bid on the basis of interest rate and multiple bids can be made at multiple interest rates. Only ‘A’, ‘B’ and ‘C’ class banks and financial institutions are allowed to participate in this process.

According to the NRB, the principal and interest of the deposit collection instruments with a validity of 79 days will be paid on September 10.

In recent times, the demand for credit has not increased as expected, which has led to a huge amount of liquidity in the banking system. The Nepal Rastra Bank (NRB) has exploited liquidity to manage the liquidity.