Nepal Rastra Bank (NRB) is set to withdraw Rs 60 billion from the banking system today, Wednesday, using its deposit collection instrument.
This move comes as liquidity remains high in banks and financial institutions, but credit demand continues to stay low. To maintain balance, NRB has been withdrawing funds from the market at least twice a week. Today’s withdrawal is planned for a longer period—63 days—compared to the usual 21-day period seen in previous weeks.
According to NRB, the decision to pull money for a longer term is due to a continued increase in liquidity and stagnant loan demand.
NRB has called on eligible banks and financial institutions (classified under Category A, B, and C) to participate in the bidding process until 3 PM today. The minimum bid amount is Rs 10 crore, with increments of Rs 5 crore, and bids can be submitted under both single and multiple interest rates.
