The Nepal Rastra Bank (NRB) withdrew Rs 120 billion from the banking system today in an effort to manage surplus liquidity. The central bank conducted a deposit collection bidding session at 3:00 PM, allowing Class ‘A’, ‘B’, and ‘C’ financial institutions to participate with bids starting from a minimum of Rs 100 million. The NRB accepted multiple interest rate bids for the 19-day instrument, with repayment of principal and interest scheduled for May 13. The move was prompted by a large amount of idle investable funds in the banking sector.
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