Nepal Rastra Bank to withdraw another Rs 18 billion from banking system today
After excessive liquidity accumulated in the banking system, Nepal Rastra Bank is set to withdraw another Rs 18 billion today, Ashoj 16, through a deposit collection instrument. The bidding for this 28-day deposit collection instrument will take place online until 3 PM today.
Kathmandu. After excessive liquidity accumulated 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 another Rs 18 billion from the banking system through deposit collection today, Ashoj 16.
The bidding for deposit collection must be done on an interest rate basis, and bids can also be placed on the interest rate, according to the central bank. Only banks and financial institutions of classes 'A', 'B', and 'C' will be allowed to participate in the bidding for the deposit collection instrument. The bidding will take place through the central bank's online bidding system until 3 PM today.
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.
The central bank has stated that the principal and interest of this 28-day deposit collection instrument will be paid on the upcoming Kartik 13.