Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, has decided to issue deposit collection instruments worth Rs 45 billion for a period of 75 days to manage excess liquidity in the banking system. Nepal Rastra Bank (NRB) has invited bids for deposit collection equipment worth Rs 45 billion.

Bidding will be conducted only through Online Bidding System Software (OBSS) till 3 pm. The interest rate of the deposit will be determined through the bidding process. The principal and interest will be paid on September 24.

Banks and financial institutions can bid for a minimum of Rs 10 crore and a maximum call amount. According to the Rastra Bank, the application amount should be Rs 50 million.

According to the NRB, the deposit collection equipment can be used as collateral in banks and financial institutions other than Nepal Rastra Bank.

The NRB has been drawing money from the market from time to time through deposit collection tools in order to make the excess liquidity management and monetary management in the banking system more effective.