Nepal Rastra Bank Absorbs NPR 20 Billion to Manage Excess Liquidity

31st August 2026, Kathmandu

Nepal Rastra Bank is continuously mopping up funds from the banking system to manage accumulating excess liquidity.

NRB Excess Liquidity Management

To absorb these funds, the central bank announced the issuance of its deposit collection facility worth NPR 20 billion on Bhadra 15.

Auction Mechanisms and Bidding Criteria

Auction Type: The deposit collection auction is structured based on variable interest rates, allowing participating institutions to bid on their preferred interest rate.

Eligible Institutions: Bidding is restricted exclusively to licensed Class A (commercial banks), Class B (development banks), and Class C (finance companies) financial institutions.

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Bidding Platform: Offers must be submitted electronically via the central bank online bidding system by 3:00 PM today.

Quota and Lot Limits: Institutions can bid for a minimum threshold of NPR 100 million, with additional bidding allowed in multiples of NPR 100 million up to the maximum total offered amount.

Maturity and Settlement Schedule

Tenure: The deposit collection instrument carries a maturity period of 86 days.

Repayment Date: Nepal Rastra Bank will settle both principal and accumulated interest on Mangsir 9, 2083.

For More: NRB Excess Liquidity Management