Rastra Bank to withdraw Rs 70 billion for 2 months to manage excess liquidity

Nepal Rastra Bank will withdraw Rs 70 billion in liquidity from the banking system for 2 months. The central bank has taken this step to manage the excess liquidity present in the financial system.

Rastra Bank will auction a deposit collection instrument worth Rs 70 billion on Friday, Asoj 23. The amount raised through the auction will be for a period of 2 months.

For this, Rastra Bank has invited proposals for participation in the auction. Through the deposit collection instrument, the central bank collects funds available in the market for the specified period.

Rastra Bank uses such instruments to manage liquidity when there is excess liquidity in the banking system.