Kathmandu. Nepal Rastra Bank (NRB) has decided to raise deposits of Rs 18 billion to manage excess liquidity in the market.

The Monetary Management Department of the Rastra Bank is going to collect the amount through the deposit collection tool for 90 days. According to the notice issued by the Rastra Bank on September 3, the application for the collection of deposits can be done through bidding till 3 pm today.

The bidding process will be done through the Online Bidding System Software (OBSS). The deposit collection equipment will be released today, according to the Rastra Bank.

The principal and interest of the instrument will be paid on November 1, 2083. The interest rate of deposit collection will be determined through the bidding process.

Banks and financial institutions participating in the bidding can apply from a minimum of Rs 10 crore. The maximum amount that can be applied is up to Rs 18 billion. The application amount should be divided by Rs 50 million.

Only the ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by the Nepal Rastra Bank are allowed to participate in the deposit collection equipment.

The central bank has been using such tools to manage the liquidity of the banking system by drawing excess liquidity in the market.