NRB selling citizen saving bond of Rs. 2.5 billion at 11.5% interest

Nepal Rastra Bank (NRB) is set to issue citizen saving bond worth Rs. 2.5 billion having a maturity period of five years.

The central bank is to issue citizen saving bond of Rs. 2.5 billion to the government to raise the required domestic debt. The bond named “Citizen Saving Bond 2084 Ka” is targeted at Nepali citizens, according to the notice issued by Monetary Management Department (MMD) of NRB.

The interested parties would have to apply through Online System of NRB from February 22 to March 14, 2023, according to the central bank. The bond will be allotted on March 20, 2023. The bond is being offered at an interest rate of 11.5 per cent annually. The payment of interest will be made semi-annually. The tax is applicable in the earned interest income.

Interested parties can apply for bonds ranging from Rs. 10,000 to the amount not exceeding the size of total issue divisible by Rs. 10,000.

The bond can be pledged or kept as security at any of the banks and financial institutions except NRB in case there is an urgent need for cash, the NRB said. The NRB has fixed the date of principal payment of the bond on March 19, 2028. Those wishing to purchase a savings bond must submit a copy of the Nepali citizenship certificate, and in the case of a minor a copy of the guardian’s citizenship and birth certificate, and two passport-size photographs.