The National Bank has been withdrawing money for long periods in recent days due to the high amount of money (liquidity) available for lending to banks and financial institutions.
The Nepal Rastra Bank is set to withdraw Rs 20 billion this Wednesday as the excess liquidity in the financial system continues to decline.
As the amount of money that can be lent to banks and financial institutions (liquidity) is high, the National Bank has been withdrawing money for a long period of time in recent days. In the same vein, the National Bank is going to withdraw the amount for 84 days today through the deposit collection device.
Banks and financial institutions that want to keep money in deposit collection can bid online until 2 pm today, according to the notification issued by the National Bank.
Only banks and financial institutions of category 'A', 'B' and 'C' will be allowed to participate in the bidding for deposit collection devices. The National Bank has also stated that the deposit collection devices purchased in this way can be used as collateral in other banks and financial institutions.
The National Bank's notification states that the bidding for deposit collection can be done by dividing the remainder by a minimum of 100 million and a maximum of 50 million rupees. The bidding for deposit collection will have to be done at the interest rate, while the multiple bidding can also be done at multiple interest rates, according to the notification issued by the National Bank.
For the last three years, the NRB has been withdrawing money from the market twice a week, on Sundays and Wednesdays. The NRB, which initially withdrew money for short periods, has now started withdrawing money for long periods.
