KATHMANDU: Nepal’s banking system is currently experiencing excess liquidity, as the number of loan seekers is low.

To manage this surplus, the central bank, Nepal Rastra Bank (NRB), will withdraw Rs 25 billion on Sunday, September 7.

The central bank will conduct the withdrawal at 3 PM through an auction process.

The withdrawn funds will accrue interest, which NRB will pay until September 28, according to the official notice.

During the auction, bids must be placed in multiples of Rs 10 million for the minimum and Rs 5 million for the maximum, ensuring the total called amount is met.

Only licensed “A,” “B,” and “C” category banks and financial institutions are eligible to participate in the auction.