Nepal Rastra Bank Directs Rs 30 Billion Liquidity Mopping Via Deposit Collection Instrument

27th July 2026, Kathmandu

Nepal Rastra Bank has initiated a liquidity absorption measure to collect Rs 30 billion from domestic financial institutions using a 179 day deposit collection instrument.

NRB Directs Liquidity Mopping

The Monetary Management Department of the central bank issued the bidding notice on Shrawan 11, setting the submission window through its online bidding platform until 3:00 PM.

The open market operation aims to absorb excess loanable funds sitting idle in commercial banks and financial institutions, helping stabilize short term interbank rates and support monetary policy objectives.

Competitive Interest Rate Determination And Bidding Structure

The applicable yield for the deposit collection instrument will be determined dynamically through an online competitive auction process.

The central bank outlined specific parameters for participating institutions:

Minimum Bid Threshold

Interested banking institutions must submit a minimum bid of Rs 100 million.

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Bidding Increments

Amounts exceeding the minimum threshold must be placed in multiples of Rs 50 million up to the total offer cap.

Rate Selection

Participating banks can submit multiple interest rate bids, with allotments prioritizing the lowest proposed interest rates to optimize central bank interest costs.

Eligibility Restricted To Licensed Banking Institutions

Participation in the liquidity auction is limited to Class A commercial banks, Class B development banks, and Class C finance companies licensed by Nepal Rastra Bank.

By withdrawing surplus liquidity from the domestic monetary system, the central bank seeks to reinforce financial stability, manage system-wide liquidity levels, and ensure smooth implementation of its broader macroeconomic strategy.

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