Nepal Rastra Bank absorbed Rs 1 billion in excess liquidity from the financial system on Tuesday through a six-day deposit collection instrument. The central bank used a competitive bidding process, allowing banks and financial institutions to place online bids, with interest rates determined accordingly. The principal and accrued interest will be repaid on March 8. The move forms part of the bank’s routine open market operations to maintain monetary stability and manage surplus funds in the banking sector.
