The Nepal Rastra Bank has called on banks and financial institutions to bid online by 3 pm today to withdraw money from the market.
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The National Bank is going to withdraw Rs 70 billion today, Wednesday, as the amount that can be lent to banks and financial institutions (liquidity) is high. The National Bank has stated that it will withdraw the amount for about two and a half months (79 days) through the deposit collection tool to manage excess liquidity.
The National Bank has called on banks and financial institutions to bid online until 3 pm today to withdraw money from the market. The National Bank's notice states that bidding can be done in a minimum of 100 million and a maximum of 50 million rupees, leaving the remainder.
Only banks and financial institutions of categories 'A', 'B' and 'C' will be allowed to participate in the bidding for deposit collection tools. The National Bank has also stated that the deposit collection tools purchased in this way can be used as collateral in other banks and financial institutions.
The bidding for deposit collection will have to be done at the interest rate, and multiple bidding can also be done at multiple interest rates, the National Bank has stated.
For the last three years, the National Bank has been regularly withdrawing money from the market. This is why the National Bank is withdrawing money from the market twice a week. With only 20 days left for the end of the current fiscal year, there is more than 1.5 trillion rupees in excess liquidity in the banking and financial system. Therefore, the National Bank is going to withdraw the mentioned amount from the market today for liquidity management.
