Nepal Rastra Bank to Absorb NPR 20 Billion Excess Liquidity Through 30-Day Deposit Collection Instrument
30th September 2026, Kathmandu
Nepal Rastra Bank (NRB) has announced an auction to mop up NPR 20 billion from the domestic banking system using a deposit collection instrument on Ashwin 14, 2083 BS (September 30, 2026).
NRB Excess Liquidity Absorption
The central bank is executing continuous liquidity absorption measures to manage surplus funds accumulated across financial institutions.
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Auction Parameters, Eligibility, and Bidding Terms
The central bank’s Monetary Management Department specified the bidding mechanism and operational rules for participating financial institutions.
- Eligible Participants: Class ‘A’ commercial banks, Class ‘B’ development banks, and Class ‘C’ finance companies licensed by Nepal Rastra Bank are eligible to participate.
- Bidding Platform and Deadline: Interested institutions must submit their competitive interest rate bids through the central bank’s online bidding system by 3:00 PM today.
- Bidding Amounts: Participating BFIs can submit bids starting at a minimum of NPR 100 million (10 crore), with higher amounts required in multiples of NPR 100 million up to the total call size of NPR 20 billion.
- Interest Rate Mechanism: The interest rate for the collected funds will be finalized through competitive market bidding.
- Tenure and Settlement: The 30-day deposit collection instrument will mature on Kartik 13, 2083 BS (October 30, 2026), when Nepal Rastra Bank will reimburse both the principal and accrued interest.
For More: NRB Excess Liquidity Absorption
