Is Liquidity Too High? NRB Seeks to Absorb Rs. 120 Billion from Banks Today
Summary
Nepal Rastra Bank is set to absorb Rs. 120 billion from banks and financial institutions through a bidding process to manage excess liquidity in the banking system.
Key Points
- Nepal Rastra Bank will collect Rs. 120 billion deposits from banks and financial institutions through bidding.
- The bidding will be held on April 24 for a 19-day deposit period with interest rates decided by bids.
- Only licensed 'A', 'B', and 'C' class banks and financial institutions approved by NRB can participate.
- The collected deposits will not count towards the cash reserve ratio but will count towards other liquidity measures.
