Kathmandu, July 31 -- Nepal's banks and financial institutions (BFIs) continue to reel under the problem of having excessive liquidity even after the commencement of the new fiscal year (FY) 2025/26.

Citing the problem, Nepal Rastra Bank (NRB), on Wednesday, stepped up efforts to absorb Rs 25 billion from the country's banking system by using a bidding process. This is the fourth time that the apex monetary authority has withdrawn BFIs' liquidity in the past two weeks of the current FY.

During this period, the central bank mopped Rs 194.35 billion in total. The central bank had earlier collected Rs 397 billion in deposits from the BFIs. With the added amount, the central bank now has cash of over Rs 591 billion of the country's banking ...