The central bank is mopping up excess liquidity of Rs 35 billion for 21 days by issuing deposit collection tool.
Currently, NRB is finding it difficult to manage the interest rate corridor due to the piling up of liquidity in the banking sector. The interbank interest rate corridor has slipped to below 3 percent, which is below the lower limit required.
Although NBR is providing a permanent liquidity facility to banks, it failed to keep the interest rate corridor within the limit.
The interested banks can submit an application for the acceptance of the tool by 3 pm May 7. The minimum biddable deposit is Rs 100 million.
