KATHMANDU: Nepal Rastra Bank (NRB) is set to absorb Rs 50 billion from the banking system today through an auction-based deposit collection instrument.

Total deposits have now exceeded Rs 7.2 trillion, leading the central bank to use such tools to manage excess liquidity and stabilize interest rates.

Licensed banks and financial institutions of category ‘A’, ‘B’, and ‘C’ can participate, with bids prioritized based on the lowest interest rates.

The bidding will be conducted online, with maturity and interest payment scheduled for September 14, 2025. NRB has been repeatedly using deposit collection instruments under its open market operations to regulate liquidity.