Nepal Rastra Bank to Absorb 125 Billion Rupees in Liquidity via Deposit Collection
Summary
Nepal Rastra Bank will collect 125 billion rupees through a bidding process to absorb excess liquidity and manage interest rates in the financial system.
Key Points
- Nepal Rastra Bank is set to collect 125 billion rupees in deposits today to reduce excess liquidity.
- The central bank uses a bidding process where banks with the lowest interest rates get priority in deposit allocation.
- Only licensed 'A', 'B', and 'C' class banks and financial institutions can participate in the bidding.
- The deposit collection tool has a maturity of up to six months, with repayments due on 2083 Baishakh 2.
