KATHMANDU, Sept 5: The Nepal Rastra Bank (NRB) intends to invest Rs 2 billion of the Retirement Fund in the fixed deposits of banks and financial institutions (BFIs).
The central bank through a notice asked the BFIs to bid for the aforementioned amount. The maturity date to keep the money in their fixed deposits is one year.
According to the notice, the NRB is seeking commercial banks (class 'A') to accept fixed deposits of Rs 1.6 billion, development banks (class 'B') Rs 300 million and national level finance companies (class 'C') Rs 100 million. It asked them to apply until 7 September mid-night.
To avail it, the BFIs should come into operation at least for two years and maintain a set minimum capital fund ratio. Similarly, they should have less than five percent of their total passive loans, and have at least 20 percent or more than that of net liquid assets of internal deposits.