NRB to Withdraw Rs. 45 Billion via 42-Day Repo Auction to Manage Liquidity

The Nepal Rastra Bank (NRB) has announced plans to withdraw Rs. 45 billion from the financial system through a 42-day repo auction aimed at managing excess liquidity. The central bank has invited proposals from banks and financial institutions, with the auction scheduled to take place online at 3 PM on Sunday.

The principal and interest from the auction will be repaid on August 17. This move comes as part of NRB's ongoing liquidity operations, with a total of Rs. 310 billion previously raised through various deposit collection tools still awaiting maturity.

By deploying short-term monetary tools like repos, NRB seeks to maintain financial stability while ensuring that the liquidity level in the banking sector remains within its targeted range.