NRB Initiates Rs 100 Billion Liquidity Absorption as Banking System Faces Surplus

The Nepal Rastra Bank (NRB) is preparing to withdraw Rs 100 billion in liquidity from the banking system this Sunday, using a bidding process. This action is part of the central bank's strategy to manage the surplus liquidity currently in circulation.

Earlier, on August 18, NRB had mopped Rs 100 billion through a similar mechanism, which is set to mature on the same day. The new Rs 100 billion instrument will have a 21-day maturity period.

Since the fiscal year began, the central bank has already absorbed Rs 246.4 billion in liquidity, with Rs 158.6 billion still outstanding. Additionally, the Standing Deposit Facility (SDF) has handled Rs 5.675 trillion in liquidity, with Rs 120.15 billion yet to mature.