Kathmandu. Nepal Rastra Bank (NRB) has decided to collect deposits worth Rs 20 billion for the management of excess liquidity in the market. The Monetary Management Department of the Nepal Rastra Bank (NRB) has called for bidding to collect the amount through a deposit collection tool for a period of 1 month.

According to the notice issued by the Nepal Rastra Bank, the bidding process can be done only through the ‘Online Bidding System Software’ (OBSS) till 3 pm today. The interest rate of deposit collection will be determined through the bidding process and the principal and interest will be paid on September 15, 2083.

According to the NRB, bidders can bid up to a minimum of Rs 10 crore and a maximum of Rs 10 crore.

Only the ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by the Nepal Rastra Bank are eligible to participate in the bidding process.

The amount and interest rate to be deposited should be mentioned in the bidding. According to the NRB, the bid proposing the lowest interest rate will be accepted on the basis of priority and the total amount of the proposal with the same interest rate will be allocated on a ‘pro-rata’ basis if the total amount of the proposal is more than the sum called.

The Open Market Transaction Operation Committee has the right to accept or reject all or partial bids of the amount called by the central bank. Also, the deposits collected cannot be counted in the Mandatory Cash Reserves (CRR) but can be calculated in SLR and liquidity ratio as per the prevailing provision.