Nepal Rastra Bank (NRB) has decided to withdraw Rs. 40 billion from the banking system to help control market liquidity.
Key Details:
1. Objective:
The central bank aims to regulate the surplus liquidity in the banking system, especially as banks experience limited loan investment opportunities.
2. Methodology:
- The liquidity will be mopped up through a bidding mechanism for 21 days.
- Financial institutions facing liquidity constraints have been invited to participate in the proposal process.
3. Recent Activity:
Since December 17, 2023, NRB has already removed Rs. 120.15 billion from the banking market.
This initiative reflects NRB’s active approach to stabilizing the financial sector by aligning liquidity levels with market needs.