KATHMANDU: Nepal Rastra Bank (NRB) is issuing a 31-day deposit collection instrument worth Rs 60 billion through a bidding process.
The Monetary Management Department of the central bank announced that the bidding for the deposit collection instrument will be conducted for a period of 31 days.
According to a notice issued by the NRB today, interested banks and financial institutions must participate in the bidding through the Online Bidding System Software by 3:00 pm today.
The interest rate will be determined through the bidding process, while both the principal and interest will be repaid on September 7.
Bids may be submitted for amounts ranging from a minimum of Rs 100 million to a maximum of Rs 100 million, up to the total amount being called.
During allocation, the NRB will prioritize bids quoting the lowest interest rates and allocate funds sequentially until the total amount is exhausted. If the demand exceeds the total amount available among bids quoting the same interest rate, the allocation will be made on a pro-rata basis.
Only Class A, B and C banks and financial institutions licensed by the NRB are eligible to participate in the bidding process.
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