Nepal Rastra Bank (NRB) is set to mobilize Rs 40 billion from the banking system as part of its ongoing liquidity management strategy. The central bank will conduct a 42-day deposit auction to collect the funds, with bidding scheduled to take place online at 3 PM on Sunday.
NRB has called for participation from banks and financial institutions, inviting them to submit proposals for the short-term liquidity absorption instrument. The central bank stated that both the principal and accrued interest will be settled on July 27.
This move comes amid existing liquidity control measures, with a total of Rs 210 billion previously raised through similar deposit collection instruments still awaiting maturity. The auction is part of the NRB’s regular market operations aimed at maintaining monetary stability and managing excess liquidity in the financial system.
