Kathmandu: Nepal Rastra Bank (NRB), the country’s central bank, has announced that it will absorb Rs 25 billion in liquidity from the banking system amid an excess flow of funds in banks and financial institutions.
According to the central bank, the absorption will be carried out for a period of 21 days through the issuance of a deposit collection instrument.
NRB has issued a notice inviting banks and financial institutions to participate in the bidding process, with applications to be submitted online by 3 pm today.
The interest rate for this instrument will be determined through the bidding process, while the principal and interest will be repaid on September 28.
Participating banks and financial institutions can submit bids ranging from a minimum of Rs 100 million up to the total call amount, in multiples of Rs 50 million.
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