Kathmandu, October 7: Nepal Rastra Bank (NRB) has decided to collect Rs. 90 billion in liquidity from the banking system. The central bank took this step for a period of 12 days after an excess of liquidity was observed in the market.

In a notice issued on Tuesday, the NRB announced that it will absorb the liquidity through a deposit collection auction. Commercial banks, development banks, and finance companies will be eligible to participate.

Bids can be placed in multiples of Rs. 500 million, with a minimum bid amount of Rs. 1 billion. The interest rate will be determined through the auction process. The principal and interest payments are scheduled for Kartik 2 (October 18).

People’s News Monitoring Service.