Nepal Rastra Bank (NRB) has withdrawn Rs 20 billion from the banking system to manage excess liquidity. The central bank invited banks and financial institutions to submit bids for its 84-day deposit collection instrument, with interest rates determined through a competitive bidding process. Repayment is scheduled for March 29. NRB has absorbed nearly Rs 200 billion over the past month as weak credit demand has led to surplus liquidity. Banks are currently estimated to be holding excess liquidity of around Rs 800 billion, pushing interest rates below 2.75 percent.
