Nepal Rastra Bank Withdraw Rs 60 Billion For Liquidity Management

Kathmandu – Nepal Rastra Bank (NRB) withdraw Rs 60 billion from the banking system through a deposit collection instrument auction on Sunday, amid excess liquidity in the market.

The central bank will draw the liquidity for a 21-day period, with the principal and interest payable on February 9. The interest rate for the deposit collection instrument will be determined through the auction process.

As per the guidelines, the auction allows bids ranging from a minimum of Rs 100 million to a maximum of Rs 50 billion. Licensed banks and financial institutions under categories ‘A’, ‘B’, and ‘C’ are eligible to participate.

NRB has been consistently withdrawing surplus liquidity since the start of the current fiscal year. Alongside the deposit collection rate under the permanent deposit facility, the central bank continues to address liquidity management through these measures.