KATHMANDU: The Nepal Rastra Bank (NRB) is set to invest Rs 3.30 billion from its Gratuity and Pension Fund into eligible banks and financial institutions.

The NRB announced via a public notice that the funds will be invested for a period of 366 days.

The NRB has stated that the funds will be invested in Class ‘A,’ ‘B,’ and ‘C’ category banks and financial institutions.

It is stated that the banks and financial institutions must fulfill the following conditions: having been in operation for at least two full years; maintaining the minimum total capital fund specified by the bank; ensuring that the ratio of non-performing loans to total loans and advances does not exceed 8 percent; and ensuring that the net non-performing loan ratio does not exceed 3 percent.

The notice also mentions that banks and financial institutions must submit an application by October 16, specifying the amount they wish to take and the proposed interest rate for securing the funds.