NRB Invites Applications to Invest Rs 3.53 Billion from Grant and Pension Fund

Kathmandu — Nepal Rastra Bank (NRB) has decided to invest Rs 3.53 billion from the Grant and Pension Fund in banks and financial institutions. For this purpose, the central bank has called for applications from interested commercial banks, development banks, and finance companies, requesting them to submit the amount they wish to borrow along with the proposed interest rate.

According to the notice published by NRB on Tuesday, applications must be submitted by 7 PM on Tuesday evening. The central bank will invest the fund for a period of one year.

As per the distribution structure, Rs 2.82 billion will be invested in commercial banks, Rs 529.5 million in development banks, and Rs 176.5 million in finance companies. The investment is expected to support short-term liquidity management in the financial sector.

To be eligible to apply, banks and financial institutions must meet several criteria. They must have been operating for at least two years, must have maintained the minimum required capital adequacy, and must ensure that their total loan-to-deposit ratio does not exceed 8 percent and their net non-performing loan (NPL) ratio is below 3 percent.

NRB has stated that mobilizing the Grant and Pension Fund in the banking sector is expected to strengthen financial stability, increase competition in interest rates, and support overall economic activity.