Kathmandu. Nepal Rastra Bank (NRB) is set to collect an additional Rs 55 billion in deposits from the market as liquidity in the banking system increases. The central bank is going to raise the amount as a deposit for 56 days through bidding on Wednesday.

According to the Rastra Bank, the interest rate of deposit collection will be determined through bidding. The principal and interest of the deposits so collected will be paid on November 18.

Banks and financial institutions interested in giving deposits can bid from a minimum of Rs 10 crore. If you bid, you can apply only for the amount of Rs 5 crore to be divided.

According to the Rastra Bank, ‘A’, ‘B’ and ‘C’ class licensed banks and financial institutions will be able to participate in the deposit collection. Interested institutions can apply till 3 pm on Wednesday.

According to the Rastra Bank, the bidding for deposit collection will be done through online bidding system software. When deposits increase compared to the demand for loans in the banking system and when liquidity is added to the system through other means, the amount investable with banks and financial institutions increases.

In such a situation, the central bank has been using monetary instruments including deposit collection with the objective of not putting excessive pressure on the interest rate and not having excess liquidity in the system.