Nepal Rastra Bank (NRB) absorbed Rs 20 billion from the domestic financial system on Friday through a one-month deposit collection instrument aimed at managing excess liquidity in the market. The operation was conducted through an online bidding system managed by the Monetary Management Department. Eligible Class A, B, and C financial institutions submitted competitive interest-rate bids before the specified deadline. The principal and interest are scheduled to be settled on September 18. Under the allocation mechanism, bids carrying the lowest interest rates are given priority, while bids quoting the same rate are allotted deposits proportionately. The central bank also clarified that deposits collected through this instrument will not be counted toward the statutory liquidity ratio and cannot be used to fulfill mandatory cash reserve ratio requirements.
