Banking News – Nepal Rastra Bank (NRB) has announced that it will absorb NPR 100 billion in liquidity from the banking system by issuing a 91-day Deposit Collection Instrument as part of its liquidity management operations.

In a notice issued on Wednesday, the Monetary Management Department of the central bank invited eligible participants to submit bids for the deposit collection instrument. The online bidding process will be conducted through the Online Bidding System Software (OBSS) until 3:00 p.m. on the same day.

According to the notice, the deposit collection instrument will be issued on Wednesday, while both the principal and interest payments will be made on Asoj 28, 2083. The interest rate will be determined through a competitive bidding process.

Eligible financial institutions may submit bids starting from a minimum of NPR 100 million, with additional bids required in multiples specified by the central bank, up to the total amount of NPR 100 billion being offered.

The bidding will be conducted on an interest rate basis, and participants will also be allowed to submit multiple interest rate bids, in accordance with NRB’s auction procedures.