Kathmandu, July 14: Nepal Rastra Bank (NRB) is set to issue Rs. 15 billion worth of one-year bonds under its open market operations to help manage liquidity in the financial system.
According to a notice issued by the Monetary Management Department, the central bank will issue the bond, named “NRB Bond 2084 ‘Ja'”, on Asar 30, 2083 (July 14, 2026).
Only licensed Class ‘A’, ‘B’ and ‘C’ banks and financial institutions are eligible to participate in the competitive bidding process.
The bond’s interest rate will be determined through the auction process. Interest will be paid to investors every six months, while the principal amount will be repaid in full upon maturity on Asar 30, 2084, one year after issuance.
NRB stated that the bonds may be used as collateral for loans from the central bank or other financial institutions. However, the investment cannot be counted toward a bank’s Cash Reserve Ratio (CRR) requirement, although it will qualify for the Statutory Liquidity Ratio (SLR).
The central bank also warned that institutions that fail to maintain sufficient funds in their settlement accounts on the bond issuance date will face a 2.5 percent financial penalty on the allotted amount and will be barred from participating in NRB’s open market auctions for six months. #nepal
