NRB Allocates Rs 380 Million in Fixed Deposits for Funds

The Nepal Rastra Bank (NRB) has announced a strategic move, deciding to invest Rs 380 million in fixed deposits within its Pension and Provident Fund and Employee Security Fund. In a recent statement released on Wednesday, the NRB outlined its plan to allocate Rs 240 million to the Security Fund and Rs 140 million to the Pension and Provident Fund.

The NRB intends to disperse the specified amount across various banks and financial institutions that meet the requisite criteria. The allocated funds will be distributed as follows: Rs 300.4 million in commercial banks, Rs 57 million in development banks, and Rs 19 million in financial institutions, totaling Rs 380 million.

These fixed deposits are set to be maintained for a duration of 366 days, commencing from March 14, and extending until March 14, 2025. Financial institutions and banks meeting the stipulated criteria, which include adhering to specified deposit ratios, maintaining a minimum capital adequacy ratio, and staying below the inactive loan threshold percentage, are encouraged to submit proposals for the proposed interest rate and the amount for fixed deposits.