The central bank is mopping up excess liquidity through issuing deposit collection tool.
Right now, NRB is finding difficulty to manage interest rate corridor due to piling up liquidity in banking sector. The interbank interest rate corridor has slipped to below 3 percent which is below the lower limit required.
Although NBR is providing 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 September 29. The minimum biddable deposit is Rs 100 million.
