KATHMANDU: With investable funds piling up in the banking system and credit demand remaining low, Nepal Rastra Bank (NRB) is set to mop up excess liquidity once again.
According to the central bank, it will conduct a deposit collection auction of Rs 45 billion on Wednesday. The bidding will take place at 3 p.m., and the collected funds will remain with NRB until September 21.
Banks and financial institutions licensed under categories “A,” “B,” and “C” will be eligible to participate in the auction. Each bid must be at least Rs 1 billion, with increments of Rs 500 million permitted until the total announced amount is reached.
The move comes as banks continue to sit on large volumes of unutilized funds due to sluggish loan demand, prompting the central bank to intervene through liquidity management tools.
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