Nepal Rastra Bank to Conduct NPR 2 Billion Deposit Auction

Following excess liquidity in the banking system, Nepal Rastra Bank (NRB) has decided to withdraw NPR 2 billion once again. The central bank announced that the auction for this amount will be held today, Chaitra 1, at 3 PM. Banks and financial institutions wishing to participate can bid in multiples ranging from a minimum of NPR 100 million to a maximum of NPR 500 million, with any remainder allocated accordingly. NRB stated that bids can be submitted either at the interest rate or through multiple interest rates. Only banks and financial institutions categorized under ‘A’, ‘B’, and ‘C’ will be eligible to participate in this 28-day deposit collection instrument. The principal and interest payments will be made on Chaitra 29.