Kathmandu: Nepal Rastra Bank (NRB) is set to withdraw an additional Rs 25 billion from the banking system as part of its liquidity management efforts, after banks struggled to increase lending.
According to NRB, the funds will be withdrawn through a bidding system over a period of 22 days. The central bank has invited proposals from banks and financial institutions (BFIs) with excess liquidity.
This move follows NRB’s earlier withdrawal of Rs 149 billion, which has yet to mature. The central bank’s continued liquidity absorption aims to stabilize the financial system amid sluggish credit demand.