Nepal Rastra Bank (NRB) has announced its plan to withdraw Rs. 50 billion from the banking system today (Sunday, Poush 21). This decision comes as the banking system is experiencing excess liquidity.
Key Details:
- Duration: The liquidity will be withdrawn for a period of 21 days through a deposit collection auction.
- Deadline: Interested banks and financial institutions must submit their bids by 2:00 PM today.
- Bid Limits:
- The minimum bid amount is Rs. 10 crore.
- Bids must be made in multiples of Rs. 5 crore, up to the total announced amount.
- Current CD Ratio: The average credit-to-deposit (CD) ratio of banks is 79.01%.
This move by NRB aims to manage the excess liquidity in the market and maintain financial stability.