Strict Move by NRB to Control Liquidity: Rs. 50 Billion to Be Withdrawn on Sunday
Author
Nepse trading

With excessive liquidity observed in the banking system, Nepal Rastra Bank (NRB) is once again set to manage it by withdrawing a large amount of funds. On Sunday, NRB plans to withdraw Rs. 50 billion from banks and financial institutions. The central bank has scheduled the auction for 3 PM today, under which the funds will be collected for a 4-day term.
The auction will have a minimum bid amount of Rs. 1 billion (Rs. 100 crore), and bids must be in multiples of Rs. 500 million (Rs. 50 crore). The repayment of both principal and interest is scheduled for Shrawan 1 (mid-July), with the interest rate to be determined through the auction. Only Class 'A', 'B', and 'C' licensed banks and financial institutions are eligible to participate. This move is expected to bring balance to the rising liquidity in the market.