Nepal Rastra Bank (NRB) is once again withdrawing Rs 30 billion from the banking system to manage excess liquidity. The central bank will collect the amount today (Jestha 6) through its deposit collection instrument.

A bidding process will be conducted at 3 PM today. Banks and financial institutions willing to participate can submit bids starting from a minimum of Rs 10 crore. Bids must be placed in multiples of Rs 5 crore, up to the total announced amount.

The interest rate for the deposit will be determined through competitive bidding, and multiple-rate bidding is also allowed. Only ‘A’, ‘B’, and ‘C’ class banks and financial institutions are eligible to participate.

This 91-day deposit instrument will mature on Bhadra 3, when both principal and interest will be repaid. The banking system has recently been facing excess liquidity due to weaker-than-expected credit demand, forcing financial institutions to park funds with the central bank even at low interest rates.