KATHMANDU: Nepal Rastra Bank (NRB) has announced plans to invest Rs 1.2 billion from the Employees’ Provident Fund in banks and financial institutions.
Issuing a public notice, the central bank has invited banks and financial institutions to submit applications by December 22, proposing the amount of fixed deposit they wish to accept along with the applicable interest rate.
According to the notice, NRB will invest Rs 960 million in Class ‘A’ commercial banks, Rs 180 million in Class ‘B’ development banks, and Rs 60 million in Class ‘C’ finance companies.
Eligible institutions must have been in operation for at least two years, maintain the minimum required capital adequacy ratio, keep total loans and advances within eight percent, and ensure that the net non-performing loan ratio does not exceed three percent, among other conditions.
The investment will be made in the form of fixed deposits, as per the criteria set by the central bank.
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