To solve the liquidity problem, the central bank is trying to manage the interest rate effectively by starting long-term deposit collection.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
Nepal Rastra Bank is withdrawing 45 billion deposits on Wednesday. As more liquidity remains, the National Bank is going to withdraw deposits through the deposit collection tool Bolakbol.
Now total deposits have reached more than 72 billion. The central bank has been attracting liquidity through deposit collection instruments and fixed deposit facilities for greater liquidity of the financial system and interest rate management. Only 'A', 'B' and 'C' category banks and financial institutions licensed by Rashtra Bank will be allowed to participate in
. While allocating the long-term deposit collection amount, according to the interest rate quoted by the counter parties, priority will be given to the amount quoting the lowest rate up to the called amount.
When the deposit is opened, it is going to be spoken through the online purchase system today. The interest rate will be determined through negotiation. The National Bank has informed that the loan and interest of the deposit collection device will be paid on October 5, 2082. The amount that can be bid will be divided by a minimum of 10 crore rupees and a maximum of 5 crore rupees up to the total call amount.
In particular, according to the Central Bank's procedure for open market transactions, if there is a long-term liquidity situation in the financial market, the transaction management committee can use the long-term deposit collection tool for a maximum period of 6 months under structural open market transactions on any given day to manage the market interest rate.
The central bank has been using deposit collection tools time and time again based on this arrangement.
