The NRB has announced that it will withdraw the amount for 42 days through the deposit collection tool to manage excess liquidity. The NRB has been withdrawing money regularly on Sundays and Wednesdays.
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The increase in the amount of money that can be lent (liquidity) in banks and financial institutions has not stopped yet. With the amount of money that can be lent increasing every day, the Rastra Bank is going to withdraw 90 billion rupees from the financial system today, Sunday as well.
The Rastra Bank has stated that it will withdraw the amount for 42 days through deposit collection equipment for managing excess liquidity. The Rastra Bank has been withdrawing money regularly on Sundays and Wednesdays.
The Rastra Bank was not able to withdraw the money due to the Tihar holiday last week. The Rastra Bank is going to withdraw the said money as the first day the office opens after the Tihar holiday falls on Sunday. The Rastra Bank has called on banks and financial institutions to bid online by 3 pm today to withdraw money from the market.
The Rastra Bank's notice states that the bid can be divided by a minimum of 100 million and a maximum of 50 million rupees, leaving the remainder. Only banks and financial institutions of 'A', 'B' and 'C' categories will be allowed to participate in the bidding for deposit collection equipment. The Rastra Bank has also stated that the deposit collection equipment purchased in this way can be used as collateral in other banks and financial institutions.
The deposit collection bidding will have to be done at the interest rate, and multiple bidding can also be done at multiple interest rates, the Rastra Bank has stated. In the current fiscal year, it was expected that the expansionary budget and monetary policy would increase credit flow and reduce the amount of credit accumulated in banks. In the initial months, there were signs of an increase in credit demand. However, banks say that credit expansion has come to a standstill due to the uncomfortable situation created after the protests on 23 and 24 Bhadra. This is why deposits in banks and financial institutions are continuously increasing, while the amount of credit available is also accumulating, they say.
In Asad itself, about 1086 billion rupees of creditable amount had been accumulated with banks and financial institutions. While the average amount of credit available for 11 months of the last fiscal year was 600 billion rupees, it suddenly increased to 1050 billion rupees in mid-Asad. The increase in creditable amount has not stopped in the following months. Accordingly, such amount reached 1012 billion rupees in Shrawan, 1046 billion rupees in Bhadra, and 1166 billion rupees in Asoj.
