Kathmandu – Nepal Rastra Bank (NRB) has declared that it will raise deposits valued at Rs 40 billion through a bidding system under its NRB to Collect Rs. 40 Billion Deposits initiative
As per an announcement made by NRB today, the central bank will be raising the deposits for a term of 168 days. The bids for deposit mobilization will take place on April 22, which is the ninth day of Baisakh, through the Online Bidding System. This means that the interest rate would be fixed according to the bids.
The minimum bidding price has been fixed at Rs 10 crores, whereas the upper limit for each bid has been set at Rs 5 crores. But financial institutions and banks have an option to make several bids, the total announced amount under the NRB to Collect Rs. 40 Billion Deposits scheme.
Only the banks and financial institutions of classes ‘A’, ‘B’, and ‘C’ licensed by the Nepal Rastra Bank can participate in this bidding process. The total amount will be refunded along with interest on August 21.
As per NRB, after acceptance of the bids, the deposited amount will be automatically withdrawn from the participating banks’ accounts and held in an individual account at the central bank. Banks that do not have enough funds on the settlement date may get barred from bidding for future transactions.
As per instructions from the central bank, the deposited amount will not be subject to the cash reserve ratio (CRR) but will be used for computing other liquidity requirements. Furthermore, there will be no provision for withdrawing the deposited amount prior to maturity under this NRB to Collect Rs. 40 Billion Deposits arrangement.
According to the NRB, this is one of the steps that they have taken in controlling excess liquidity within Nepal’s banking sector.
Stay tuned to NepseTalk for the latest news.
लोड हुँदैछ...
0 Comments