NRB to Invest Rs. 3.3 Billion from Gratuity and Pension Fund in Banks and Financial Institutions

Kathmandu, October 14 — The Nepal Rastra Bank (NRB) has announced plans to invest Rs. 3.3 billion from its gratuity and pension fund in Class A, B, and C banks and financial institutions for a period of 366 days (one year and one day).

According to the central bank, eligible institutions must meet several key criteria to qualify for the investment. They must have been in operation for at least two years, maintain the minimum total capital fund requirement, keep non-performing loans (NPLs) below eight percent of their total loan portfolio, and ensure the net NPL ratio remains within three percent.

Interested institutions are required to submit their applications by September 30, specifying the amount they wish to borrow and the interest rate they are offering. NRB stated that all proposals will be evaluated competitively to ensure the fund generates secure and beneficial returns.

The move reflects NRB’s strategy to efficiently utilize the gratuity and pension fund while strengthening liquidity flow in the financial system.