KATHMANDU: Nepal Rastra Bank (NRB) is going to withdraw liquidity worth 30 billion from the banking system on Tuesday.

NRB is going to withdraw an additional Rs 30 billion from the banking system for liquidity management for 21 days through the bidding system.

Only banks and financial institutions of category ‘A’, ‘B’ and ‘C’ licensed by the Rastra Bank will be allowed to participate in the auction. The central bank will prioritize bids with the lowest interest rates, as outlined in the notice.

The bidding amounts must range from a minimum of Rs 100 million to a maximum of Rs 50 billion, with incremental increases up to the total amount.

The deposits will have a 21-day maturity period, with the principal and interest payable on February 18.