NRB to Absorb Rs. 40 Billion from Banks Through 49-Day Deposit Auction

Nepal’s central bank, Nepal Rastra Bank, has announced plans to withdraw Rs. 40 billion from banks and financial institutions through a competitive bidding process aimed at managing excess liquidity.

As per a notice issued on Wednesday, the deposits will be collected for a period of 49 days, with bidding scheduled for Baisakh 16 (April 29) via the Online Bidding System. Participating institutions must specify both the amount they intend to deposit and the interest rate they are offering. The minimum bid has been set at Rs. 10 crore, while bids must be placed in multiples of Rs. 5 crore, up to the total announced amount. Multiple bids are permitted within the overall limit.

Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are eligible to participate. The deposited funds, along with accrued interest, will be returned on Ashad 3, 2083 (June 17, 2026).

The central bank stated that once bids are accepted, the corresponding amounts will be automatically debited from participants’ accounts and held in a separate NRB account. Institutions failing to maintain sufficient balances on the settlement date could face restrictions on future participation.

NRB also clarified that these deposits will not count toward the cash reserve ratio (CRR), though they will be included in other liquidity calculations. Early withdrawal will not be permitted before maturity. The move is part of NRB’s ongoing efforts to absorb surplus liquidity in the banking sector.