Nepal Rastra Bank is set to collect Rs 45 arba through long-term deposit collection today to manage excess liquidity in the financial system. The process will be conducted through a bidding system among licensed financial institutions.
To address the excess liquidity present in Nepal’s financial system, Nepal Rastra Bank (NRB) is set to collect long-term deposits worth Rs 45 arba today (Sunday). The collection will take place through a competitive bidding process.
Currently, the total deposits within the banking system have exceeded Rs 70 kharba. In order to manage interest rates and maintain liquidity balance, NRB regularly utilizes tools like the Standing Deposit Facility and deposit collection mechanisms.
According to the guidelines for open market operations, the central bank may use structural open market instruments for long-term liquidity management. This includes deposit collection tools with a maturity period of up to six months. Under this provision, NRB has been periodically conducting such deposit collections.
Only Class ‘A’, ‘B’, and ‘C’ licensed banks and financial institutions will be eligible to participate in today’s bidding. Participating institutions will propose interest rates through the bidding process, and preference will be given to those offering the lowest rates.
The entire bidding process will be carried out via the online purchase system. The principal and interest of today’s collected deposits will be paid on Bhadra 1, 2082. NRB has stated that bids must be in multiples of Rs 5 crore, with a minimum bid of Rs 10 crore, up to a total of Rs 45 arba.
This article was originally published on https://bajarkochirfar.com Translated with the help of AI and reviewed by our editorial team.
