NRB to Invest Rs 9.35 Billion in Fixed Deposits for One Year

Nepal Rastra Bank has announced that it will invest Rs 9.35 billion for a period of one year. The amount, which is held under the gratuity and pension fund, will be placed as fixed deposits in licensed banks and financial institutions.

The central bank has invited applications from interested banks and financial institutions. Institutions willing to receive the deposit can submit their applications on Falgun 10, 2082, between 10:00 AM and 12:00 PM.

Out of the total investment amount, Rs 7.48 billion has been allocated to commercial banks, Rs 1.40 billion to development banks, and Rs 467.5 million to national-level finance companies.

Nepal Rastra Bank has set specific eligibility criteria for participating institutions. Banks and financial institutions with non-performing loans (NPL) exceeding 8 percent of their total deposits will not qualify. Applicants must have been in operation for at least two years, maintained the required minimum capital fund, and complied with the liquidity ratio set by the central bank.

Similarly, the credit-deposit ratio must remain within the limit prescribed by NRB, and institutions must have recorded a net profit in the previous fiscal year. For institutions previously placed under prompt corrective action, at least six months must have passed since their release. They must not have been declared problematic under Section 86 (B) of the Nepal Rastra Bank Act, 2002, or if declared earlier, at least six months must have passed since clearance.

Additionally, the institutions must have already issued shares allocated to the general public. The central bank expects that this decision will help manage liquidity in the banking system while ensuring the effective utilization of the gratuity and pension fund.