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NRB to Absorb Rs. 20 Billion from BFIs Amid Excess Liquidity in Banking System

Nepal Rastra Bank will collect Rs. 20 billion in deposits from banks and financial institutions through a bidding process today to manage excess liquidity in the financial system.

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NRB to Absorb Rs. 20 Billion from BFIs Amid Excess Liquidity in Banking System

Nepal Rastra Bank (NRB) is set to collect Rs. 20 billion in deposits from banks and financial institutions (BFIs) through a bidding process today, Ashwin 14, as part of its efforts to manage excess liquidity in the banking system. According to a notice issued by the central bank, the deposits will be collected for a 30-day period through the Online Bidding System at 3:00 PM today. The interest rate on the deposits will be determined through the competitive bidding process. The minimum amount that can be bid is Rs. 10 crore, while the maximum bid must be in multiples of Rs. 10 crore, up to the total issue amount. BFIs are also allowed to submit multiple bids within the overall announced limit. Only NRB-licensed Class A, Class B, and Class C banks and financial institutions are eligible to participate in the bidding. The collected deposits, along with the applicable interest, will be returned on Kartik 13, 2083 (November 30, 2026). The move comes as the banking system continues to hold excess liquidity. Experts have pointed to the high level of funds available with BFIs as one reason the central bank has been repeatedly absorbing liquidity. Despite relatively low interest rates and recent policy measures aimed at supporting the capital market, the stock market has yet to show a significant response.

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