Nepal Rastra Bank to Collect 20 Billion from BFI's; Interest to be Returned after 3 Months

Nepal Rastra Bank (NRB) has announced that it will collect deposits worth Rs.20 billion from banks and financial institutions through a bidding process today.

According to a notice published today, the central bank will collect the deposits for a period of 86 days. The bidding will take place on Bhadra 15 (August 31) through the Online Bidding System at 3 Pm.

The interest rate will be decided through the bidding process. The minimum amount for bidding has been set at Rs. 10 crore, while the maximum limit is (In multiples of) 5 Crore, up to the total issue amount. However, institutions can submit multiple bids within the total announced amount.

Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are allowed to take part in the bidding. The deposits collected will be returned along with interest on Mangis 9, 2083.