NRB to Raise Rs. 20 Billion Through 35-Day Deposit Collection Instrument

Nepal Rastra Bank (NRB) is set to issue a Rs. 20 billion, 35-day deposit collection instrument through a competitive bidding process as part of its monetary and liquidity management operations. According to the central bank, licensed Class ‘A’, ‘B’, and ‘C’ banks and financial institutions can participate in the auction through the Online Bidding System (OBSS) until 3:00 PM today. The interest rate on the deposits will be determined through the bidding process, with bids allocated starting from the lowest quoted interest rate until the announced amount is exhausted. In case demand exceeds the available amount at the same interest rate, allocation will be made on a pro-rata basis. Participating institutions can bid for a minimum of Rs. 10 crore, with bids required to be in multiples of Rs. 10 crore, up to the total issue amount. The principal and interest will be repaid on Ashoj 2. The collected deposits cannot be included in the bidders’ investment portfolios or repaid before maturity, although they can be counted toward the required Statutory Liquidity Ratio (SLR) and liquidity ratio as per NRB directives.