KATHMANDU: Nepal Rastra Bank (NRB) is set to withdraw Rs 45 billion from the financial system on Friday through a 42-day deposit collection instrument amid continued excess liquidity.

The central bank said total deposits have crossed Rs 7.75 trillion, prompting repeated use of open market operations to manage liquidity and stabilize interest rates.

Only “A”, “B” and “C” class banks and financial institutions can participate in the online bidding, where interest rates will be determined competitively. The principal and interest will be repaid on June 26, 2026.

NRB has been using such instruments under its maonetary policy framework to absorb surplus liquidity and regulate short-term market rates.