KATHMANDU: Nepal Rastra Bank (NRB) has announced an online bidding process to collect Rs 45 billion in deposits for a 28-day period to manage banking liquidity.

Licensed commercial, development, and finance institutions (Classes A, B, and C) can submit competitive interest rate bids via the Online Bidding System Software (OBSS) until 3:00 PM on June 17, with the issue maturing on July 15.

Bidders must propose a minimum of Rs 100 million, with additional amounts in multiples of Rs 50 million.

Allotments will prioritize the lowest interest rate offers, and identical rate bids will be settled on a pro-rata basis if they exceed the total target amount.

NRB will directly debit successful bidders’ accounts on the day of issuance, warning that insufficient funds will lead to blacklisting from future auctions.

Furthermore, early withdrawal of these deposits is strictly prohibited before the maturity date.

While these funds can be used as collateral with other financial institutions and count toward Statutory Liquidity Ratio (SLR) and Liquidity Ratio requirements, they cannot be used to meet the Cash Reserve Ratio (CRR).