Nepal Rastra Bank to withdraw Rs 150 billion liquidity from banking system for 8 days

Nepal Rastra Bank is set to withdraw Rs 150 billion (Rs 1,50,00,00,00,000) in liquidity from the financial system for liquidity management.

The central bank will use an 8-day deposit collection instrument to absorb the liquidity. Bidding for this will take place today itself.

According to Rastra Bank, bids for the deposit collection must be made on interest rates, and multiple bids at different interest rates will also be allowed, the central bank said.

Only institutions licensed by Nepal Rastra Bank can take part in the bidding for the deposit collection instrument. The central bank uses such instruments to manage excess liquidity in the banking system.