KATHMANDU: Today, Nepal Rastra Bank is withdrawing Rs 25 billion from the banking system through an auction-based deposit instrument for 42 days.

This move aims to address excess liquidity as total deposits have exceeded Rs 7.2 trillion. Only licensed banks and financial institutions are participating, with funds allocated based on competitive interest bids. The principal and interest will be repaid by September 10, 2025.

Despite efforts to stimulate investment through flexible monetary policy, persistent liquidity has forced the central bank to absorb surplus funds to maintain market stability.