Nepal Rastra Bank Collects Rs 1 Billion in Deposits

Nepal Rastra Bank, the central bank, has collected Rs 1 billion in deposits as part of its efforts to manage excess liquidity in the market.

The bank’s Monetary Management Department issued a notice stating that the deposit collection was done through an 83-day deposit collection instrument.

Deposit Collection Details

The bidding process for the deposit collection instrument was held online through the bidding software system, and the interest rate was determined through the bidding process.

According to the notice, the principal amount and interest will be paid on Ashwin 27, 2083.

The minimum bid amount was set at Rs 10 crore, and a single participant could submit multiple bids at different interest rates.

Only banks and financial institutions with a license from Nepal Rastra Bank, classified as ‘A’, ‘B’, or ‘C’, were eligible to participate in the bidding process.

Interest Rate and Allocation

The bank stated that the bids with the lowest interest rate would be given priority, and the allocation would be made accordingly.

In case of a tie, the allocation would be made on a pro-rata basis.

The bank reserved the right to accept or reject any bid, either partially or fully.

Investment Portfolio and Reserve Requirements

The deposit collection instrument would be considered as part of the investment portfolio, but the collected amount would not be included in the statutory liquidity ratio (SLR) or the cash reserve ratio (CRR).

However, it could be included in the liquidity ratio.

The bank also clarified that there would be no pre-mature withdrawal facility before the maturity period.