Nepal Rastra Bank Announces Deposit Collection of NPR 40 Billion

Nepal Rastra Bank has decided to collect deposits worth NPR 40 billion for a period of 89 days, starting from the 5th of Falgun, due to excess liquidity in the banking and financial institutions.

The central bank has invited proposals from banks and financial institutions through an online bidding process. Participating banks can propose shares ranging from NPR 10 crore to NPR 5 crore.

The interest rate for the deposit collection will be determined through the bidding process, and there will be a provision for multiple interest rates. When distributing the amount, priority will be given to the lowest interest rate, and the funds will be allocated according to the bid amount.

The interest and principal payment for this deposit collection will be made on the 3rd of Jestha, 2083. The objective of this deposit collection is to manage the excessive liquidity in the banking system and maintain financial stability.