To manage excess liquidity in the market, Nepal Rastra Bank (NRB) has announced plans to pull Rs 40 billion from the banking system on Wednesday, June 11.
Liquidity Control via Deposit Collection Tool
The central bank is using its deposit collection instrument to absorb the excess liquidity from banks and financial institutions. The bidding process for this operation will take place today at 3 PM, according to Nepal Rastra Bank.
Bidding Rules and Eligibility
Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions are eligible to participate in this process. Interested institutions can submit bids ranging from a minimum of Rs 10 crore to a maximum of Rs 5 crore per portion, ensuring that if the total bid amount exceeds the target, the remaining portion will not be allocated.
Interest Rate and Bid Type
- Bids must be submitted with an interest rate offer.
- Multiple bids with different interest rates will be accepted.
- This operation follows a multiple interest rate bidding model.
21-Day Maturity Period
This deposit collection will be valid for 21 days, with the maturity and interest payout date set for Asar 18 .
