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Nepal Rastra Bank to collect Rs 100 billion deposit to manage liquidity, who can apply?

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. KATHMANDU: Nepal Rastra Bank (NRB) is to issue deposit collection instruments worth Rs 100 billion with a maturity period of 61 days to manage liquidity from the banking system.  Issuing a notice on Friday, the Nepal Rastra Bank (NRB) said that online bidding for the deposit collection equipment will be open till 3 pm today.

TAG_OPEN_div_10Bidding can only be done through ‘Online Bidding System’. The principal and interest of this deposit will be paid on July 6. The interest rate will be determined through the bidding process.

The central bank has informed that bids can be made up to a minimum of Rs 10 crore and a maximum of Rs 5 crore.TAG_OPEN_div_8 Only the ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by the Nepal Rastra Bank are eligible to participate in the bidding.

The amount will be allocated gradually by giving priority to the institution that offers the lowest interest rate. If more applications are received at the same interest rate, the allotment will be done on a prorata basis.

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