KATHMANDU: Nepal Rastra Bank (NRB) is set to absorb Rs 30 billion in excess liquidity from commercial banks and financial institutions.

The central bank’s Monetary Management Department called for online bidding via its deposit collection instrument on July 27 to manage surplus cash currently floating in the banking sector.

According to the official notice, the liquidity will be collected for a tenor of 179 days, with the online bidding process open until 3:00 PM today.

Interest rates will be determined through a competitive bidding process, prioritizing institutions that offer the lowest rates.

The minimum bidding amount is set at Rs 100 million, with additional bidding allowed in increments of Rs 50 million up to a ceiling of Rs 100 billion.

Participation is limited to licensed Class ‘A’, ‘B’, and ‘C’ financial institutions.