Kathmandu, February 14
With banks and financial institutions flush with cash, Nepal Rastra Bank is absorbing Rs 10 billion from the market for 90 days starting Sunday. BFIs, which want to participate in this, should opt for secret bidding at 3 pm.
Min Bahadur Shrestha, executive director of the central bank’s debt management department, said the bank will determine the interest rate on the basis of secret bidding.
Banks are flush with cash, with the Madhesh movement and the Indian blockade preventing the creation of an investment-friendly environment. The central bank has been collecting deposits from the banks using different monetary instruments, in its bid to prevent haphazard investment.
So far in the current fiscal, the central bank has collected from banks deposits amounting to more than Rs 3 trillion. The bank will return the deposit collected on Sunday (February 14) on May 14.
