Nepal Rastra Bank (NRB) has decided to invest Rs. 3.05 billion of employee allowance and pension fund in fixed deposit account.
The central bank has requested the interested banks and financial institutions (BFIs) to apply for the amount.
The NRB is going to invest the amount in the term deposit account for a period of one year from December 16, 2021 to December 15, 2022, according to a notice issued by the NRB.
The central bank has informed that it will invest Rs. 2.44 billion in commercial banks, Rs. 457.5 million in development banks and Rs. 152.5 million in national level finance companies.
Banks and financial institutions wishing to take the deposit have to submit an application with interest rate to the central bank.
The BFIs will have to submit an application to the NRB by disclosing the amount they want to take and the proposed interest rate for that amount by 4 pm December 7 (Tuesday).
The central bank has said that in order to keep the amount it wants to invest, the depository institution must meet the specified conditions.
Only BFIs that have completed at least 2 years of operation will be eligible for it, it said.
Similarly, the minimum capital prescribed by the NRB should be maintained, operating profit in the previous fiscal year, non-performing loan should be less than 5 per cent of the total loan and real estate loan should not exceed the limit prescribed by the bank.
The NRB has secretly asked for interest rate on term deposits and the bank which promises maximum interest rate will be approved for investment.
Source : TRN,
