KATHMANDU: Nepal Rastra Bank (NRB) has announced a plan to withdraw Rs 40 billion from the banking system through a 175-day deposit auction on Sunday to manage excess liquidity.

The auction will be held at 3 p.m. today, with bids starting at a minimum of Rs 100 million and increasing by Rs 50 million increments. Interest rates will be determined through competitive bidding.

NRB previously conducted 21-, 42-, and 90-day deposit collections but extended the period amid continued liquidity pressure.

The repayment of principal and interest is set for April 25, 2026. Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions licensed by NRB can participate.