NRB to Withdraw Rs. 30 Billion from Banking System Amid Excess Liquidity

Nepal Rastra Bank (NRB) has announced plans to withdraw Rs. 30 billion from the banking system on Sunday through a deposit collection auction. The move comes in response to excess liquidity in the banking sector.

The central bank has scheduled the auction for 3 PM today, with a maturity period of 63 days. The minimum bid amount is set at Rs. 100 million, and bids must be made in multiples of Rs. 50 million. Partial allotment will be done up to the total announced amount. The principal and interest payments are due on Bhadra 15 (August 31), and the interest rate will be determined via the competitive bidding process.

According to NRB, the auction will be conducted based on interest rate bidding. Multiple interest rates and bids will be accepted. Only licensed Class 'A', 'B', and 'C' banks and financial institutions are eligible to participate in this deposit collection auction.

The central bank is employing this measure to absorb excess liquidity from the market and help maintain monetary balance in the short term.