Nepal Rastra Bank to Auction NPR 30 Billion Deposit Collection Instrument on February 27, 2026

Nepal Rastra Bank is set to conduct an auction for a deposit collection instrument worth NPR 30 billion for a period of 28 days on February 27, 2026. According to a notice released by the bank's Monetary Management Department, the auction will be conducted exclusively through the online bidding system (OBSS) until 3:00 PM on the same day. The issuance date is also set for February 27, 2026.The interest rate for the deposit collection instrument will be determined through the bidding process, and the principal and interest payment will be made on March 25, 2026. Investors can participate with a minimum of NPR 10 million and a maximum of NPR 50 million, with the remaining funds allocated on a pro-rata basis.Additionally, the collected deposits can be used as collateral in other banks and financial institutions. Only banks and financial institutions that have received approval from Nepal Rastra Bank in classes "Ka", "Kha", and "Ga" are eligible to participate. Participants must clearly specify the amount and interest rate (up to four decimal places) in their bids.The allocation of the collected deposits will prioritize the bids with the lowest interest rate. If there are multiple bids with the same interest rate, the allocation will be made on a pro-rata basis. The Open Market Operations Committee reserves the right to accept or reject any part or all of the bids. The bank will deduct the approved deposit amount from the respective counterparty's bank account and deposit it into a separate account designated for the deposit collection.If there are insufficient funds in the counterparty's account at the time of issuance, they will be blacklisted and barred from participating in future auctions. The deposit amount will be transferred to the respective bank account along with the interest on the payment date. However, the collected deposit amount cannot be counted as cash reserve requirements (CRR) but will be considered for SLR and Liquidity Ratio calculations.