Nepal Rastra Bank to Absorb Rs 110 Billion Through Deposit Collection to Manage Excess Liquidity

After excess liquidity accumulated in the banking system, Nepal Rastra Bank has once again decided to withdraw money from the market using its deposit collection instrument. The central bank announced that it will absorb Rs 110 billion from the banking system today (Falgun 17), with the bidding process scheduled for 3 PM. According to the central bank, banks and financial institutions willing to participate can submit bids starting from a minimum of Rs 10 crore, in multiples of Rs 5 crore, up to the total announced amount. The deposit collection will be conducted through interest rate-based competitive bidding, allowing multiple bids at different interest rates. Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions are eligible to participate in the auction. The 87-day deposit collection instrument will mature with principal and interest payments scheduled for Jestha 13, 2083.