Liquidity Glut: Rastra Bank Withdrawing Rs. 30 Billion from Banking System Again
After excess liquidity piled up in the banking system, Nepal Rastra Bank is set to withdraw Rs. 30 billion through a deposit collection instrument. The bidding for this 30-day instrument will take place today, Ashoj 12, until 3 PM via the online system.
Kathmandu. After excess liquidity piled up in the banking system, Nepal Rastra Bank has been continuously withdrawing money. The central bank has been pulling money from the banking system using the deposit collection instrument.
The central bank is set to withdraw Rs. 30 billion from the banking system again today, Ashoj 12, through deposit collection.
The bidding for deposit collection must be done at the interest rate, and bids can also be made on the interest rate, according to Rastra Bank. Only 'A', 'B', and 'C' class banks and financial institutions will be allowed to participate in the bidding for the deposit collection instrument. The bidding will take place today until 3 PM through Rastra Bank's online bidding system.
Banks and financial institutions willing to deposit can bid up to the total called amount, with a minimum of Rs. 100 million and a maximum that is a multiple of Rs. 100 million.
Rastra Bank has stated that the principal and interest of this 30-day deposit collection instrument will be paid on the upcoming Kartik 11.