Kathmandu. Nepal Rastra Bank (NRB) has decided to collect deposits worth Rs 35 billion from the market to manage liquidity. The bank has invited bids to collect the amount for 60 days.

Nepal Rastra Bank (NRB) has been drawing liquidity through deposit collection instruments and fixed deposit facilities to manage excess liquidity in the financial system and control interest rates.

Only ‘A’, ‘B’ and ‘C’ class banks and financial institutions licensed by the Rastra Bank will be allowed to participate in the bidding. While allocating the long-term deposit collection amount, the lowest bidding amount will be allocated to the amount called on the basis of priority according to the interest rate quoted by the counter parties.

Bidding for deposit collection will be done through the online purchase system on Monday. The interest rate will be determined through the bidding process. According to the Rastra Bank, the principal and interest of the deposit collection equipment to be bid today will be paid on November 20, 2083.

If the bidding amount is divided by a minimum of Rs 10 crore and a maximum of Rs 10 crore, it will be up to the total call amount. It can also be used as collateral in banks and financial institutions.