NRB to Absorb Rs 30 Billion From Banks Through Liquidity Operation
Nepal Rastra Bank (NRB) will collect Rs 30 billion in deposits through a 28-day deposit collection instrument as part of its ongoing liquidity management operations. Bidding will be conducted through the Online Bidding System Software by 3pm on Friday, with the interest rate determined through the auction. The principal and interest will be repaid on October 16, 2026. Licensed Class ‘A’, ‘B’ and ‘C’ banks and financial institutions are eligible to participate, with a minimum bid of Rs 100 million and additional bids allowed in multiples of Rs 100 million. Allocation will begin with the lowest interest-rate bids, while bids at the same rate may be allocated on a pro-rata basis if demand exceeds the remaining amount. The deposit will not count toward the cash reserve ratio but can be included in the statutory liquidity ratio and liquidity ratio as per NRB directives. The funds will form part of participating institutions’ investment portfolios and cannot be withdrawn before maturity. The latest auction is part of NRB’s open-market operations aimed at managing liquidity in Nepal’s banking system.
