Nepal Rastra Bank to Mop Up Rs. 35 Billion from Banking System

Nepal Rastra Bank (NRB) has invited bids to collect Rs. 35 billion from the financial system for a period of 60 days through its deposit collection instrument. The move is aimed at managing excess liquidity in the banking system and maintaining interest rate stability. Only Class A, Class B, and Class C banks and financial institutions licensed by NRB will be eligible to participate in the bidding process. The interest rate will be determined through competitive bidding, with the offered amount allocated on a priority basis starting from the lowest quoted interest rate until the total amount of Rs. 35 billion is reached. The bidding will be conducted through the online bidding system on Monday. Each institution can bid for a minimum of Rs. 10 crore, while the bid amount must be in multiples of Rs. 10 crore up to the total issue amount. The principal and interest of the deposit collection instrument will be paid on Kartik 20, 2083. The instrument can also be used as collateral by banks and financial institutions.