Nepal Rastra Bank announced on June 24, 2026, that it would absorb Rs 70 billion from the banking system for a period of 79 days using deposit collection instruments. The central bank has issued related notices on both June 24 and June 26, 2026, indicating ongoing efforts to manage excess liquidity in the financial system.
The move reflects NRB's active liquidity management role at a time when the banking system has accumulated surplus funds. Excess liquidity, if left unaddressed, can affect interest rate stability and the effectiveness of monetary policy transmission.