Nepal Rastra Bank (NRB) plans to gather Rs. 50 Arba in deposits through a public bidding process on 2nd Shrawan, 2081, aiming to manage the current excess liquidity in the market. The bidding, conducted via the Online Bidding System Software, will close at 3:00 PM on the specified date. Key details of the deposit collection are:
- Instrument Name: Deposit Collection
Amount: Rs. 50 Arba
Bidding Date: Until 3:00 PM, 2nd Shrawan, 2081
Issuance Date: 2nd Shrawan, 2081
Interest Rate: Determined through bidding
Principal and Interest Payment Date: Shrawan 23, 2081
Minimum Bid Amount: Rs. 10 crores, with increments of Rs. 5 crores
Collateral: Usable as collateral at banks and financial institutions except the issuing bank - Bidders must specify the interest rate, allowing for multiple bids with different rates.
- Eligible participants are Class “A”, “B”, and “C” banks and financial institutions licensed by NRB.
- Bids should include the deposit amount and interest rate (up to four decimal places).
- Allocations will favor bids with the lowest interest rates until the total amount is met.
- If identical interest rates exceed the total amount, allocation will be on a pro-rata basis.
- The committee can accept or reject any or all bids, fully or partially.
- Accepted bid amounts will be debited from the counterparty’s NRB account, with a separate account opened for the deposits.
- Counterparties lacking sufficient balances on the issuance date will be blacklisted and barred from future bids.
- The deposit amount and interest will be credited to the respective bank’s NRB account on the payment date.
- The collected deposit will be part of the investment portfolio, not counting towards the Cash Reserve Ratio (CRR), but can be included in the Statutory Liquidity Ratio (SLR) and Liquidity Ratio per NRB guidelines.
- Premature repayment before the maturity date is not allowed.