Key Takeaways:
- Rs 30 billion deposit call for 28 days via central bank instrument
- Bidding closes Sept 18 at 3pm through Online Bidding System Software
- Licensed Class A, B, C banks eligible; minimum bid Rs100m, multiples of Rs 100m
- Principal and interest repayable Oct 16, 2026 (Ashoj 30, 2083); counts toward SLR but not CRR
Nepal Rastra Bank (NRB) is set to collect Rs 30 billion in deposits for 28 days through a deposit collection instrument as part of its liquidity management operations.
The central bank's Monetary Management Department said bidding for the one-month instrument would be conducted through the Online Bidding System Software (OBSS) by 3pm on Friday. The interest rate will be determined through the bidding process, while the principal and interest will be repaid on October 16, 2026 (Ashoj 30, 2083).
Licensed Class 'A', 'B' and 'C' banks and financial institutions are eligible to participate. Bids must be submitted in terms of interest rates, with institutions allowed to submit multiple bids at different rates. The minimum bid amount is Rs 100 million, with additional bids in multiples of Rs 100 million, up to the total Rs 30 billion called.
Allocation will begin with the lowest interest-rate bids until the called amount is exhausted. If bids at the same rate exceed the remaining amount, allocation will be made on a pro-rata basis. The Open Market Operations Committee may accept or reject all or part of the bids.
The amount collected will not count toward banks' cash reserve ratio (CRR) but can be counted toward the statutory liquidity ratio (SLR) and liquidity ratio under NRB directives. The deposit will form part of the bidder's investment portfolio and cannot be returned before maturity.
NRB said accepted amounts would be debited from counterparties' accounts and deposited into a separate account. Institutions failing to maintain sufficient funds on the issue date may be blacklisted and barred from future auctions. The central bank will credit principal and interest on maturity.
The latest operation is part of NRB's use of open-market instruments to manage liquidity in the banking system.