Nepal Rastra Bank (NRB) on Friday absorbed Rs 100 billion from the banking system to manage surplus liquidity. The central bank deployed a deposit collection instrument with a 56-day maturity through a bidding process conducted at 3:00 PM. Licensed commercial banks, development banks, and finance companies were eligible to participate, with a minimum bid size of Rs 100 million. The NRB said the operation was necessary due to excess investable funds in the banking system. The principal and interest will be repaid to participating institutions on June 10.
