Nepal Rastra Bank to Withdraw Rs 40 Billion from Banking System via Deposit Collection Tool

Kathmandu. Nepal Rastra Bank (NRB) is set to withdraw Rs 40 billion from the banking system using a deposit collection tool. Following an accumulation of excess liquidity, the central bank will absorb the funds for a period of 160 days. Currently, liquidity remains abundant in the banking system due to stagnant credit demand. Banks and financial institutions are providing funds to the central bank at interest rates hovering around 3 percent. The central bank has been utilizing deposit collection tools and standing deposit facilities to manage excess liquidity and interest rates within the financial system. Only 'A', 'B', and 'C' class...