Rastra Bank is going to withdraw 55 billion rupees from the financial system today and Sunday as well.
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Rastra Bank is going to withdraw the amount for 21 days through the deposit collection tool for excess liquidity management. The National Bank is about to withdraw the said amount from the market after the increase in the amount of money that can be given to the banks and financial institutions (liquidity) does not stop.
In order to withdraw money from the market, the National Bank has called on banks and financial institutions to talk online till 3 pm today. It is mentioned in the notice of the Rashtra Bank that when dividing by a minimum of 10 crores and a maximum of 5 crores, the remainder can be divided.
Only 'A', 'B' and 'C' category banks and financial institutions will be allowed to participate in the deposit collection device. The National Bank has also said that the deposit collection equipment purchased in this way can be used as collateral in other banks and financial institutions.
Rastra Bank has said that the negotiation of deposit collection will be done on the interest rate, and the multi-interest rate can be negotiated.
To ensure that the interest rate does not fluctuate abnormally but remains within the desired limit, the National Bank has launched the 'Interest Rate Corridor'. Under the corridor, three limits of interest rates are fixed, upper, middle and lower. At present, the upper limit (ceiling rate) has been maintained at 6 percent. This rate is the interest rate paid by banks and financial institutions when they take loans from the National Bank. The middle rate (policy rate) is 4.5 percent. It is the overnight repo rate at which banks borrow for one day. The lower limit (floor rate) has been fixed at 2.75 percent. This is the interest rate that banks and financial institutions get when the National Bank withdraws money from the market through deposit collection.
The upper and lower limit rates of the corridor have been adjusted by the Rashtra Bank to the Sapti (interbank interest rate) between banks. Therefore, the National Bank tries to keep the interbank rate around the policy rate as much as possible. Even if this is not possible, it tries to keep within the lower and upper limits of the corridor. At the same time, when the interbank rate falls to the lower limit, the National Bank withdraws money from the market through various instruments.
When the interbank interest rate approaches the upper limit, the central bank sends money to the market through various instruments. Currently, since the interbank interest rate has been below the lower limit of the corridor for 2 and a half years, the National Bank is drawing money through various tools. In the same order, Sunday is also going to be pulled.
