Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is to issue deposit collection instruments with a period of 28 days to manage excess liquidity in the banking system. Nepal Rastra Bank (NRB) on Wednesday announced bidding for deposit collection equipment worth Rs 45 billion.

Bidding will be conducted only through the Online Bidding System Software (OBSS) till 3 pm on Wednesday.

According to the Nepal Rastra Bank, the deposit collection equipment will be issued on June 17. The interest rate of this deposit will be determined through the bidding process. The payment of principal and interest of the equipment is scheduled for July 14.

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 5 crore.

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.