NRB set to withdraw 90 billion rupees from banking system

Kathmandu, January 22 — Nepal Rastra Bank is set to withdraw 90 billion rupees from the banking system.

Using a deposit collection instrument, the central bank has started pulling the 90 billion rupees from banks and financial institutions for a period of 21 days.

The interest rate will be determined through an auction process.

Nepal Rastra Bank has announced that the principal and interest will be paid by February 12.

Only banks and financial institutions from categories A, B, and C are eligible to participate in the auction.

The central bank has used this instrument to collect deposits when there is an excess of credit-worthy investments in the market.

To participate, institutions must contribute a minimum of 100 million rupees.

This money can also be used as collateral by the banks and financial institutions.