KATHMANDU: Nepal Rastra Bank (NRB) is set to withdraw Rs 100 billion from the banking system today, May 22, as part of its ongoing liquidity management efforts.

Issuing a public notice, the central bank announced that it is utilizing its deposit collection instrument for a maturity period of 61 days.

According to the NRB, the bidding process will be conducted electronically through its Online Bidding System software and will conclude by 3:00 PM today.

The principal amount along with the accrued interest for this structural liquidity tool will be paid back on July 21.

Licensed banks and financial institutions (BFIs) wishing to participate in the auction can submit bids for a minimum of Rs 100 million.

Higher bidding amounts must be cleanly divisible by Rs 50 million within the aggregate ceiling of the total called amount.