KATHMANDU, Jan 6: To manage excess liquidity in the banking system, Nepal Rastra Bank (NRB) has issued one-year government bonds.
On Tuesday, the central bank offered bonds worth Rs 2.5 billion, inviting banks to submit competitive bids online.
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Banks must submit their bids by 2:00 PM, and interest on the bonds will be paid every six months. The interest rate will be determined through the bidding process.
This is the fourth bond issuance in a week by NRB to control the accumulation of funds in the banking system.
Earlier, NRB had issued bonds ‘A,’ ‘B,’ and ‘C’ worth Rs 2.5 billion each for a one-year term. Last Wednesday, banks submitted applications to invest Rs 12 billion in the bonds.
