NRB to Withdraw Rs 50 Billion from Banking System via Deposit Auction

To address the increasing surplus liquidity in the financial sector, Nepal Rastra Bank (NRB) has unveiled a 63-day auction for deposit collection, targeting to gather Rs 50 billion from banks and financial institutions.

The central bank has extended an invitation for participation to eligible BFIs, with online bidding set for 3 PM on Wednesday. As per NRB, the repayment of both principal and interest on the accrued funds will occur on August 27.

This new liquidity absorption follows a series of similar actions, with approximately Rs 2.5 trillion already accumulated through diverse deposit instruments that are still pending maturity.