October 2, 2026

Nepal Rastra Bank to Mop Up 18 Billion Rupees Excess Liquidity Through Deposit Collection

2nd October 2026, Kathmandu

Nepal Rastra Bank (NRB) is mopping up NPR 18 billion in excess liquidity from the banking sector through a deposit collection instrument.

This step aims to assist commercial banks, development banks, and finance companies in managing unutilized liquidity amid sluggish loan demand.

Eligible Bidders: Commercial banks, development banks, and finance companies are eligible to participate.
Bidding Process: Interested financial institutions must submit their proposed interest rates by 3:00 PM today via the online bidding portal.
Multiple Bids Allowed: Institutions are permitted to submit multiple interest rate bids. Bids offering the lowest interest rates will be prioritized during allotment.
Application Limits: Minimum bid amount is set at NPR 100 million, with additional increments in multiples of NPR 50 million up to the total offered amount.
Collateral Flexibility: Deposits placed with NRB under this instrument can be utilized as collateral for transactions among other banks and financial institutions.

Maturity Period: The deposit collection instrument carries a 28-day maturity tenure.
Repayment Schedule: Principal and interest amounts will be refunded to participating banks on Kartik 13, 2083 BS.
Market Context: The central bank frequently absorbs short-term funds to absorb idle capital currently accumulated within financial institutions due to low credit demand.