Nepal Rastra Bank intensifies liquidity mop up policy; Issue deposit collection worth Rs 20 arba

Nepal Rastra Bank is auctioning and issuing its deposit collection instrument worth Rs 20 arba on Shrawan 6, 2075 i.e. today. The central bank is issuing the instrument for 30 days.

The central bank has been issuing debt collection instruments from the start of the fiscal year. The instrument being issued today is the 5th consecutive instrument.

The instrument issued at Shrawan 01, 02, 03 and 04 was of Rs 10 arba each. Nepal Rastra Bank is trying to collect Rs 60 arba from the market till today

Interested applicants can pace their bids till 3:00 AM through Online Bidding System. The interest rate for the instrument will be determined through auction. The payment of the principal and the interest will be made on Bhadra 05, 2075.

Interested bidders can place bids for minimum of Rs 5 crore and maximum upto the amount divisible by Rs 5 crore. The instrument can be used for pledging in any of the financial institutions except Nepal Rastra Bank.

‘A’, ‘B’ and ‘C’ class financial institutions can bid for the instrument. In case of the total bid amount exceeds the actual amount of Rs 20 arba, the issue will be made on pro rata basis.