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 20 billion rupees this Sunday 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.
But today, the National Bank is going to withdraw the amount for 12 days through the deposit collection device. For the last three years, the National Bank has been withdrawing money from the market regularly twice a week on Sundays and Wednesdays. Today, it has started withdrawing 20 billion rupees.
The notice issued by the National Bank states that banks and financial institutions that want to place money in the deposit collection can bid online until 2 pm today.
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 National 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 National Bank's notice 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 notification issued by the National Bank states that the bidding for deposit collection will be done at the interest rate, while multiple bidding can also be done at multiple interest rates.
