NRB to Absorb Another रू 45 Arba Today to Manage Excess Banking Liquidity
To mop up persistent excess liquidity accumulating within the banking system, Nepal Rastra Bank (NRB) is issuing a 75-day deposit collection instrument worth रू 45 arba via an online auction today.
Nepal Rastra Bank (NRB) is set to absorb रू 45 arba from the domestic financial sector today (Ashad 12, 2083) to counter the piling levels of investable capital across commercial channels. The central bank's Department of Monetary Management announced that the online auction bidding will formally initiate at 3:00 PM this afternoon. Licensed Class ‘A’ commercial banks, Class ‘B’ development banks, and Class ‘C’ finance companies are eligible to participate in this open market operation. According to the central bank's operational guidelines, interested banking and financial institutions (BFIs) can submit competitive interest rate bids for a minimum volume of रू 10 crore. Maximum bid sizes can extend up to the total requested volume of रू 45 arba, provided they are structured in clean multiples of रू 5 crore. NRB clarified that the final interest yield will be market-determined through a competitive Dutch auction framework, and institutions are permitted to submit multiple bids at varying interest rate tiers. This specific financial instrument is structured as a 75-day deposit collection window, with the central bank slated to repay both the principal amount and accumulated interest on Bhadra 24, 2083.