KATHMANDU: Nepal Rastra Bank (NRB) is set to withdraw an additional 35 billion from financial institutions, kickstarting discussions on this endeavor on Wednesday, December 27.

This collection drive, spanning 14 days, invites applications from banking and financial entities interested in participation. By January 10, 2024, NRB will unveil the operation’s terms and interest rates.

Institutions are eligible to apply for amounts ranging between 10 million to 50 million Nepali Rupees. Prioritization will center on descending interest rates, with the lowest bids taking precedence.

Participation is open exclusively to banks and financial institutions under the categories “A,” “B,” and “C” as classified by Nepal Rastra Bank. The application process mandates clear specification of desired amounts and interest rates (up to four decimal places), emphasizing lower rates and pro-rata distribution for similar bids.

NRB’s recent efforts to bolster market liquidity have been evident. Within a month of initiating collections from November 22 in the fiscal year 2080/81, the central bank amassed an impressive 197 billion and 25 million Nepali Rupees.

Specifically, within four sessions since December 17, NRB withdrew 70 billion, having initially invited applications totaling 142.8 billion, but receiving requests amounting to 139.8 billion from diverse banks.

Despite substantial reservations for investments, banks maintained notably low interest rates ranging from 0.7048% to 2.9957% for deposits placed with the central bank.