Nepal Rastra Bank to Collect Rs 100 Billion from Market to Manage Excess Liquidity
Summary
Nepal Rastra Bank is set to collect Rs 100 billion via a deposit instrument to manage excess liquidity in the banking system, with bids accepted from licensed banks and financial institutions.
Key Points
- Nepal Rastra Bank will collect Rs 100 billion from the market to manage excess liquidity in the banking system.
- The deposit instrument has a maturity period of 83 days with interest rates determined via bidding.
- Only Class ‘A’, ‘B’ and ‘C’ licensed banks and financial institutions can participate in the bidding process.
- The collected amount counts towards the Statutory Liquidity Ratio and liquidity ratio but not the Cash Reserve Ratio.
