Nepal Rastra Bank to Mop Up Rs. 50 Billion Through Deposit Collection Auction
The central bank has invited bids to collect Rs. 50 billion from banks and financial institutions as part of its liquidity management strategy.
Nepal Rastra Bank (NRB) has announced plans to absorb Rs. 50 billion from the banking system through a deposit collection instrument to manage excess market liquidity. In a notice issued by its Monetary Management Department, the central bank invited bids for the deposit collection auction on Shrawan 1, with the bidding process scheduled to remain open until 3:00 p.m. via the Online Bidding System Software (OBSS). The deposit collection instrument will be issued on the same day, while both the principal and interest will be repaid on Kartik 29, 2083. The interest rate will be determined through the competitive bidding process. Eligible participants include only NRB-licensed Class 'A', 'B', and 'C' banks and financial institutions. Bidders may apply for amounts starting from Rs. 100 million, in multiples of Rs. 50 million, up to the total amount announced by the central bank.