NRB Liquidity Mopping: Central Bank to Absorb Rs 40 Billion Excess Cash

Nepal Rastra Bank (NRB) is set to collect Rs 40 billion from the banking system today to manage the current state of excess liquidity. The Monetary Management Department has issued a 21-day deposit collection instrument, with the bidding process conducted through the Online Bidding System Software (OBSS) until 3:00 PM on May 13, 2026. Licensed 'A', 'B', and 'C' class financial institutions are eligible to participate with a minimum bid of Rs 100 million, and the interest rates will be determined through a competitive bidding process that prioritizes the lowest offers. While these deposits can be utilized as collateral with other financial institutions and count toward the Statutory Liquidity Ratio (SLR) and Liquidity Ratio, they cannot be counted toward the Cash Reserve Ratio (CRR). The central bank has scheduled the principal and interest payments for June 24, 2026 (Ashad 10, 2081), and has noted that no premature payments will be permitted.