Rastra Bank to Collect NPR 18 Billion Deposit for 28 Days
Nepal Rastra Bank is set to issue a deposit collection instrument worth NPR 18 billion for 28 days through bidding. Only 'A', 'B', and 'C' class banks and financial institutions are eligible to participate.
Kathmandu. Nepal Rastra Bank is going to issue a deposit collection instrument worth NPR 18 billion for 28 days through bidding.
According to the bank's Monetary Management Department, applications can be submitted only through the online bidding system until 3 PM today. The instrument will be issued on the same day.
Only 'A', 'B', and 'C' class banks and financial institutions licensed by Nepal Rastra Bank will be allowed to participate in the bidding. Investors can apply for a minimum of NPR 100 million and a maximum of up to the total called amount, with an increment of NPR 100 million.
Multiple bids can be made at multiple interest rates. In the interest rate bid, the amount to be deposited and the interest rate (up to four decimal places) must be mentioned.
The deposit collection period will be until Kartik 13 (October 30, 2023). Principal and interest will be paid on that date. While accepting bids, the lowest interest rate will be given priority, and if the interest rates are the same, allocation will be done on a pro-rata basis.
The bank has clarified that the Open Market Operations Committee will have the right to accept or reject bids partially or fully. The accepted bid amount will be deducted from the respective bank's account and deposited in a separate account at Rastra Bank. A warning has also been given that if there is insufficient balance, the concerned institution will be blacklisted.
This amount will remain in the concerned institution's investment portfolio and cannot be counted in the mandatory cash reserve (CRR). However, it can be counted in the liquidity ratio (SLR).