KATHMANDU: Nepal Rastra Bank (NRB) is set to absorb Rs 100 billion from the financial market today to manage surplus liquidity in the banking system.

Issuing a notice on Wednesday, the central bank’s Monetary Management Department called for competitive bidding through its online bidding system software for an 83-day deposit collection instrument, with bidding closing at 3:00 PM today.

Under the central bank’s guidelines, the interest rate for the instrument will be determined through a multi-rate competitive bidding process, with both principal and interest scheduled for maturity payment on October 13, 2026.

Licensed Commercial Banks (Class ‘A’), Development Banks (Class ‘B’), and Finance Companies (Class ‘C’) are eligible to participate, with bid submissions allowing a minimum entry of Rs 100 million up to the full targeted amount of Rs 100 billion.

Participants are permitted to submit multiple bids at varying interest rates, specified up to four decimal places.

The central bank confirmed that allotments will prioritize the lowest proposed interest rates until the targeted Rs 100 billion threshold is met, with pro-rata distribution applied in the event of identical rate submissions exceeding available volume.

The Open Market Operations Committee retains complete authority to accept or reject any bid, in whole or in part.

While funds deposited under this facility cannot count toward the Cash Reserve Ratio (CRR), institutions may tally these assets toward their Statutory Liquidity Ratio (SLR) and general liquidity ratios, though early withdrawal or pre-mature redemption before maturity remains prohibited.