Nepal Rastra Bank (NRB) has announced plans to withdraw Rs 35 billion from the banking system over a 10-day period starting Sunday, using its deposit collection instrument (DCI) through competitive bidding. The move aims to address persistent excess liquidity, with total deposits in the financial system exceeding Rs 7.5 trillion. Participation in the DCI is limited to licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions, and interest rates will be determined through bidding. The principal and accrued interest will be repaid on December 24. NRB is authorized to use this structural open market tool for managing long-term liquidity for up to six months.
