NRB to Absorb Rs 40 Billion from Market to Manage Liquidity

KATHMANDU, November 3

The Nepal Rastra Bank (NRB) is set to absorb Rs 40 billion from the banking system to regulate liquidity, issuing a 175-day deposit instrument through an auction process.

According to the central bank, banks and financial institutions (BFIs) have been invited to submit their proposals, with the online auction scheduled for 3 PM on Sunday. The principal and interest payments for the instrument will be settled on April 26, 2026, NRB stated.

This latest move is part of NRB’s ongoing efforts to maintain stability in the money market and manage excess liquidity within the financial sector.

Earlier, the central bank had withdrawn Rs 130 billion through the Deposit Collection Instrument, which is yet to mature. Additionally, NRB has absorbed Rs 669 billion via the Standing Deposit Facility (SDF) — a short-term liquidity absorption tool used to manage daily market fluctuations.