Treasury Bills

13th September 2022, Kathmandu

Treasury bills are short-term government bonds used to raise domestic debt with a maturity of one year or less. Treasury bills are issued for 4 periods of 28 days, 91 days, 182 days, and 364 days. Treasury bills of these different durations are issued as per requirement.

This bill is sold to raise short-term funds needed by the government. Issuance and the method used in bolakbol Treasury bills are issued through bolakbol. In spoken language, the multi-speech method (American spoken system) is used.

There is a provision that the same person or organization can speak separately or multiple times. The bidding should be done through an online bidding system of treasury bills. The discount rate is applied instead of the interest rate on treasury bills. The discount rate is determined through negotiation.

“A”, “B” and “C” category banks and financial institutions, non-bank financial institutions, organized organizations as well as ordinary Nepali citizens can participate in the negotiation of treasury bills approved by Nepal Rastra Bank.

At least 15 percent of the bid amount is set aside for non-competitive bids. Banks and financial institutions of “A”, “B” and “C” categories cannot participate in the treasury bill as non-competitive.

When speaking as non-competitive, only the demand amount should be mentioned, not the price. Treasury bills are provided to non-competitive bidders at the weighted average price determined by competitive bidders. It is not possible to speak from both competitive and non-competitive sides in the same speech.

2.50 percent of the bid amount should be arranged as Earnest Money while bidding for Treasury Bills. Bidders who do not have an account in Nepal Rastra Bank should deposit the earnest money amount in the treasury bill application account within the specified time and submit the voucher to this department.

Applicants who have an account in Nepal Rastra Bank should maintain the balance of the Earnest Money loan amount in their account in this bank. Unsuccessful Bidders who do not have an account in this bank will be refunded the amount deposited as Earnest Money in cash or transfer.

Treasury Bills are gradually distributed up to the call amount, with the priority being given to the organization that mentions the highest value in the bidding process. On the next day after bidding, on the issue date, among the successful bidders who have an account with Nepal Rastra Bank, and in the case of those who do not have an account with this bank, the accounts are reconciled by spending the treasury bill application account.

A certificate with details is provided as evidence to the successful bidder. After deducting the discount amount in the issuance of treasury bills, only the remaining amount is deposited, and the full amount (the value indicated on the certificate) is paid on the specified date.

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