NRB Issues Rs 25 Billion in One Year Bonds to Manage Bank Liquidity

Nepal Rastra Bank (NRB) is continuing to issue bonds to manage the extra money in the banking system. On Monday, it floated one-year bonds worth Rs 25 billion, marking the seventh time in the past two weeks that such bonds have been issued.

In total, NRB has issued Rs 155 billion in one-year bonds over the last two weeks to control excess liquidity.

Banks and financial institutions can place their bids for these bonds online until 2:00 pm. The interest rate will be decided based on the bids received.

Investors who buy these bonds will receive interest payments every six months.

NRB first started issuing one-year bonds on December 29 to absorb surplus funds from banks.