Nepal Rastra Bank has decided to collect NPR 100 billion in deposits from the banking system for a period of 61 days. Banks and financial institutions can submit online bids to determine the interest rate, offering amounts ranging from a minimum of NPR 100 million to the total call amount. The central bank has stated that it will prioritize the lowest interest rates when allocating the requested amount. Kathmandu, May 21.
Nepal Rastra Bank plans to withdraw NPR 100 billion through deposit instruments over a 61-day term starting this Friday. Due to decreased loan disbursements, excess liquidity remains within the banking system, which has affected interest rates. The central bank has been actively working to absorb this surplus liquidity through various channels.
In this deposit instrument, banks and financial institutions can submit their desired amounts and interest rates via online bids until 3 PM. Interest rates will be determined based on these bids. Institutions may submit bids ranging from a minimum of NPR 100 million up to the total call amount. When allocating the collected deposits, Nepal Rastra Bank will prioritize the lowest interest rates first and distribute funds accordingly.
