NRB Issues Two-weekly Deposit of Rs 3 Billion

December 19: Nepal Rastra Bank (NRB) has issued two-weekly deposit of Rs 3 billion. According to NRB, it auctioned the two-weekly deposit worth of Rs 3 billion in a bid to balance demand and supply of investable money (liquidity).

The banks and financial institutions (BFIs) depositing their deposits to NRB will be getting a set interest rate. NRB will be providing 0.8950 per cent interest rate on it. As per the set mechanism, such interest rate is 0.10 per cent less than the weighted average interbank prevailing in the market prior to two working days. The deposit will be returned with interest on January 1, said NRB.

The 'A', 'B' and 'C' listed BFIs fulfilling the standard provided can participate the two-weekly deposit auction conducted through online.

According to the two-weekly deposit collection work procedure 2073, the BFIs can collect required amount of deposit on set interest rate. Similarly, the BFIs can auction the amount which is minimum of Rs 10 million or divisible of 10 million. Moreover, if the BFIs are short of the amount in their cash reserve which they auction on the day of issuance of the tool, such BFI will be kept in blacklist and barred from participation in future auctions.