Nepal Rastra Bank to Collect NPR 30 Billion in Deposits Today for Interest Rate Management

Nepal Rastra Bank is set to collect a total of NPR 30 billion in deposits today (Wednesday) through an auction-based deposit collection tool. Currently, the total deposits with the central bank have exceeded NPR 72 trillion.

To manage excess liquidity in the financial market and to control interest rates, the central bank has been using deposit collection tools and permanent deposit facilities. According to the open market operation procedures, when there is an excess of long-term liquidity in the financial market, the central bank manages it to stabilize market interest rates by using a long-term deposit collection tool, with the duration of up to 6 months.

Only authorized banks and financial institutions in categories K, Kh, and G will be eligible to participate in the auction. The deposit collection will be carried out based on the interest rates set by these banks, with the lowest bidder being prioritized. The auction will take place through an online platform, and the interest rates will be determined accordingly. The deposit and interest payments are scheduled for Bhadra 29, 2082, as per the information provided by Nepal Rastra Bank. The minimum bid amount will be NPR 10 crore, and the maximum will be NPR 50 crore.