NRB issuing 31-day deposit instrument worth Rs 60bn

KATHMANDU: Nepal Rastra Bank (NRB) is to issue a 31-day deposit collection instrument worth Rs 60 billion through a competitive bidding process, the central bank announced on Friday.

The Monetary Management Department of the NRB had invited bids for the one-month instrument and said willing banks and financial institutions (BFIs) must submit offers via the Online Bidding System software by 3:00 pm on August 7.

The interest rate will be determined through bidding, and principal and interest will be paid on September 7. Bidders may submit offers in units of Rs 100 million up to the total call amount.

Allocation will be made by prioritising the lowest interest rates quoted in bids. If demand for the total issued amount exceeds bids at the same interest rate, the amount will be distributed on a pro rata basis.

Only 'A', 'B' and 'C' class BFIs licensed by the NRB are eligible to participate in the bidding process.

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