Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB), the central bank of Nepal, is to issue deposit collection equipment worth Rs 60 billion through bidding.

The Monetary Management Department of the Bank is bidding for deposit collection equipment for the next 31 days.

According to a notice published by the central bank today, the banks and financial institutions interested in participating in the bidding process should only bid through Nepal Rastra Bank’s Online Bidding System (OBSS) till 3:00 pm today.

The deposit will be collected at the interest rate determined by the bidders and the principal and interest will be paid on September 22. The bids can be bid for a minimum of Rs 10 crore and maximum of Rs 10 crore.

While allocating the amount called for collection of deposits, the lowest interest rate mentioned in the bid will be given first priority and the amount called for will be distributed sequentially. The amount will be allocated on pro-rata basis if the demand is more than the total amount issued from the bids at the same rate of interest.

Only banks of class ‘A’, ‘B’ and ‘C’ licensed by Nepal Rastra Bank can participate in the bidding. The bidding will have to mention the amount and interest rate that the depositor wants to deposit.

According to the central bank, the accepted bid amount will be collected from the account of the concerned counterparty in the Nepal Rastra Bank and deposited in a separate account for the collected deposits.

The deposit amount will be deposited in the account of the concerned bank with the interest fixed on the payment date of the deposit collection equipment. The deposit amount cannot be counted in the investment portfolio of the concerned bidder. However, the SLR and liquidity ratio to be maintained as per the directive of Nepal Rastra Bank can be calculated.

The collected deposit amount cannot be paid back or pre-mature payment to the concerned bidder before the payment date.