NRB to Mop Up Rs. 35 Arba from Banking System Through 180-Day Deposit Auction

Nepal Rastra Bank (NRB) will conduct a bidding for a Rs. 35 Arba deposit collection instrument on Tuesday, Bhadra 3, as part of its efforts to manage excess liquidity in the banking system. The Monetary Management Department will collect the amount for a 180-day period, with the auction scheduled through the Online Bidding System Software (OBSS) until 3:00 PM. The instrument will be issued on the same day, while principal and interest will be repaid on Falgun 3, 2083. Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions licensed by NRB will be eligible to participate, and bidders may submit offers at multiple interest rates. The minimum bid amount is Rs. 10 crore, with bids required to be in multiples of Rs. 10 crore up to the total amount called. Bids offering the lowest interest rates will receive priority during allocation. The deposit can be used as collateral with banks and financial institutions other than NRB and can be counted toward the Statutory Liquidity Ratio (SLR) and Liquidity Ratio, but not toward the Cash Reserve Ratio (CRR). NRB regularly uses deposit collection instruments to absorb excess liquidity from the financial system and maintain stability in market interest rates.