Nepal Rastra Bank Invites Interest Rate Proposals for Fixed Deposit Investment

Kathmandu: Nepal Rastra Bank has invited proposals for interest rates from banks and financial institutions for investing its fund in fixed deposits. The funds from the bank’s grants and pension fund, amounting to NPR 7.35 billion, will be invested in fixed deposits. Eligible banks and financial institutions that hold a license and meet the required conditions can submit their proposals.

The total investable amount is NPR 7.35 billion, with NPR 5.88 billion allocated for commercial banks of category "A," NPR 1.10 billion for national-level development banks of category "B," and NPR 367.5 million for national-level finance companies of category "C." The deposits will be held from January 21, 2026, to January 21, 2027, for a period of 366 days.

Proposals must be submitted by 7 PM on Magh 2, 2026. Banks and financial institutions wishing to submit proposals must have been in operation for at least two years, maintain minimum capital requirements (including reserves), and have non-performing loans (NPL) below 8%. They must also comply with other criteria such as a good liquidity ratio, a loan-deposit ratio within the limits specified by Nepal Rastra Bank, and have made profits in the last financial year. Financial institutions that have been declared problematic or have had corrective actions imposed must have completed at least six months since being removed from such status.

Nepal Rastra Bank clarified that the proposed interest rate would remain valid until the investment date. This move is expected to impact liquidity management in the banking system and intensify interest rate competition.