Nepal Rastra Bank (NRB) is set to absorb Rs 60 billion from the banking system today as part of its ongoing effort to manage excess liquidity. The Monetary Management Department of NRB announced that the amount will be collected through the deposit collection auction instrument for a period of 31 days.
Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions are eligible to participate in the auction, which must be submitted based on interest rates. The central bank has specified that the auction will be conducted online only until 3 PM on Bhadra 1.
Participants are required to place bids with a minimum of Rs 100 million, while additional bids must be in multiples of Rs 50 million. The allocation of funds will prioritize the lowest interest rate quoted, distributing sequentially until the total announced amount is met.
The principal and interest from the collected deposits will be settled on Asoj 1, according to NRB. Officials stated that the move is part of the central bank’s regular measures to absorb surplus liquidity in the financial system and maintain monetary stability.
