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.
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The Nepal Rastra Bank is set to withdraw 25 billion rupees this Wednesday after the excess liquidity in the financial system did not decrease.
The Rastra Bank has been withdrawing money for a long period of time in recent days due to the high amount of money available for lending to banks and financial institutions (liquidity). But today, the Rastra Bank is going to withdraw the amount for 16 days through the deposit collection device.
Banks and financial institutions that want to deposit money can bid online until 2 pm today, according to the notification issued by the Rastra Bank.
Only banks and financial institutions of category 'A', 'B' and 'C' will be allowed to participate in the bidding for the deposit collection device. The Rastra Bank has also stated that the deposit collection device purchased in this way can be used as collateral in other banks and financial institutions.
The Rastra Bank's notification states that the bid can be made by dividing the deposit collection by a minimum of 100 million and a maximum of 50 million rupees, leaving a remainder. The deposit collection will be done at the interest rate, while multiple bids can be made at multiple interest rates, according to a notification issued by the National Bank.
For the last three years, the National Bank has been regularly withdrawing money from the market twice a week, on Sundays and Wednesdays.
