Nepal Rastra Bank to Absorb Rs 125 Billion to Manage Excess Liquidity in Banking System

Nepal Rastra Bank is set to absorb Rs 125 billion today, Friday, through a deposit collection instrument to manage excess liquidity in the financial system. Only ‘A’, ‘B’, and ‘C’ class banks and financial institutions are eligible to participate in the bidding process. The central bank aims to reduce surplus liquidity and stabilize market interest rates through this long-term deposit collection mechanism. With credit demand remaining weak and liquidity still high in the banking system, NRB has been frequently using such monetary tools. The principal and interest of the collected deposits will be repaid on April 14, 2026 (2083 Baisakh 2 as per the Nepali calendar).