Nepal Rastra Bank has called on commercial banks to apply for a total of
Rs.70.98 crore rupees that the central bank plans to give away as
fixed deposit.
Those interested must apply latest by Asar 24, mentioning the interest rate that they are willing to pay. The fixed deposit can be taken for a period of one year starting from Shrawan 1. The amount must be returned to the NRB along with interest at the end of the one year period.
However, the commercial banks interested to apply must meet various conditions to be eligible for the fixed deposit. They must have maintained the minimum capital requirement and their non-performing assets must be below 5 percent of the total loans. The interested bank’s liquid assets must be 20 percent or more of the local deposits.
There are other conditions as well. The banks must have earned profit in the last fiscal year; their real estate loans should not exceed the cap set by the NRB, the NRB should not have fined or taken action against CEO or acting CEO of the banks, and if they have faced action, there should be a gap of minimum two years since the date of action taken.
Likewise, the banks must have released the shares set aside for general public. They should not have been ordered to make immediate correction, if so, there should be a lapse of at least six months of they being freed of the order. Also, they must not be declared sick as per Nepal Rastra Bank Act, 2058.
At the end of each fiscal year, Nepal Rastra Bank collects all the money in its different reserves/funds and lends them to commercial banks at an interest rate proposed by them. Such funds are a huge relief for banks during liquidity crunch, when the banks have to borrow money at high rate of interest.
NRB is giving more Rs.8.85 crore and Rs. 8.85 crore to development banks and finance companies on an auction basis. All the criteria are same as for commercial banks.
This amount will help to increase the liquidity of financial institutions.
src : sharesansar
Those interested must apply latest by Asar 24, mentioning the interest rate that they are willing to pay. The fixed deposit can be taken for a period of one year starting from Shrawan 1. The amount must be returned to the NRB along with interest at the end of the one year period.
However, the commercial banks interested to apply must meet various conditions to be eligible for the fixed deposit. They must have maintained the minimum capital requirement and their non-performing assets must be below 5 percent of the total loans. The interested bank’s liquid assets must be 20 percent or more of the local deposits.
There are other conditions as well. The banks must have earned profit in the last fiscal year; their real estate loans should not exceed the cap set by the NRB, the NRB should not have fined or taken action against CEO or acting CEO of the banks, and if they have faced action, there should be a gap of minimum two years since the date of action taken.
Likewise, the banks must have released the shares set aside for general public. They should not have been ordered to make immediate correction, if so, there should be a lapse of at least six months of they being freed of the order. Also, they must not be declared sick as per Nepal Rastra Bank Act, 2058.
At the end of each fiscal year, Nepal Rastra Bank collects all the money in its different reserves/funds and lends them to commercial banks at an interest rate proposed by them. Such funds are a huge relief for banks during liquidity crunch, when the banks have to borrow money at high rate of interest.
NRB is giving more Rs.8.85 crore and Rs. 8.85 crore to development banks and finance companies on an auction basis. All the criteria are same as for commercial banks.
This amount will help to increase the liquidity of financial institutions.
src : sharesansar
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