NRB to Collect NPR 40 Billion Deposits to Manage Excess Liquidity

Nepal Rastra Bank is set to collect deposits worth NPR 40 billion today to manage excess liquidity in the banking system. The Monetary Management Department has invited bids for a 56-day deposit collection instrument, with submissions open until 3:00 PM today through the Online Bidding System (OBSS). Only ‘A’, ‘B’, and ‘C’ class banks and financial institutions are eligible to participate. The interest rate will be determined through competitive bidding, and allocations will be made prioritizing lower rate bids. The minimum bid amount is NPR 100 million, in multiples of NPR 50 million, up to the total announced amount. The principal and interest will be repaid on Jestha 17, 2083, with no provision for premature withdrawal. While the collected deposits will not be counted toward the Cash Reserve Ratio (CRR), they will be eligible for inclusion in the Statutory Liquidity Ratio (SLR) and overall liquidity ratio, according to the central bank.