KATHMANDU, Nov 9: Nepal Rastra Bank (NRB) is set to mop up Rs 30 billion in deposits on Sunday. With excess liquidity continuing in the banking system even after the Dashain and Tihar festivals, the central bank is again mobilising its deposit collection instrument through bidding.
The total deposits have now exceeded Rs 7.4 trillion. The central bank has been absorbing excess liquidity through deposit collection instruments and the Standing Deposit Facility to manage liquidity and interest rates in the financial system.
Revised interest rate corridor system introduced
Only A, B, and C-class banks and financial institutions licensed by NRB will be eligible to participate in the bidding. While allocating long-term deposit collection funds, priority will be given to those quoting the lowest interest rates, with allocation made sequentially up to the announced amount.
With deposits swelling, the bidding will be conducted today through the online trading system. Interest rates will be determined through a competitive bidding process. According to NRB, the principal and interest of the deposit collection instrument auctioned today will be settled on February 1, 2026.
The minimum bid amount has been set at Rs 1 billion and the maximum at a sum divisible by Rs 500 million without remainder, up to the total amount offered.
