Nepal Rastra Bank to Withdraw NPR 100 Billion from Banking System

Participants from Class A, B, and C banks and financial institutions will be required to specify the amount they wish to deposit along with the interest rate in the bidding

Nepal Rastra Bank to Withdraw NPR 100 Billion from Banking System

Kathmandu | Nepal Rastra Bank (NRB) is set to withdraw NPR 100 billion from the banking system today. With an excess of deposits and low demand for loans, the central bank has been steadily pulling money out of the market to manage liquidity.

Just last Thursday, NRB had already withdrawn NPR 40 billion. Today’s move will be conducted through a bidding process using deposit collection tools, allowing banks and financial institutions to participate.

Banks and financial institutions can contribute a minimum of NPR 100 million, with the repayment of principal and interest scheduled for 5th October (Asoj 20). Participants from Class A, B, and C banks and financial institutions will be required to specify the amount they wish to deposit along with the interest rate in the bidding process.

This step is part of the central bank’s ongoing efforts to manage liquidity within the banking sector.