Government Securities Available in Nepal

To collect the internal debt as per the fiscal policy of the Government of Nepal through the banks and financial institution, non bank financial institutions and through the general public, the Government of Nepal issues different short term and long term bonds and securities, as per National Debt Act 2059 and National Debt Regulation 2061. The government bonds are issued as per Government Securities Primary and Secondary Market Management regulation 2061. The responsibility of issuance of bonds, collection and providing funds to Nepal Government, collection and distribution of interest and principle for government to the related parties and other activities related to the proper management of the bonds are done by the central bank of Nepal, Nepal Rastra Bank (NRB). The government securities available in Nepal are:

1. Treasury Bills
2. Development Bonds
3. Citizen Saving Bonds
4. National Saving Bond
5. Foreign Employment Saving Bonds

1. Treasury Bills :

Treasury Bills are issued in Nepal for 28, 91, 182 and 364 days. They are issued through of auction process. For the calculation of the discount rate, 364 days are taken for a year. Any bank, financial institution, non financial institution or Nepalese citizen can apply for the purchase of the treasury bills.The request for the purchase of the treasury bills can be done as competitive or non-competitive participant. However, Class A, Class B and Class C financial institutions, categorized by NRB,  cannot apply as non-competitive. 15% of the total

2. Development Bonds:

Development Bonds are fixed coupon rate, mid-term bond issued on the basis of auction process. Bank and financial institution, non financial institution and Nepalese citizen can purchase this type of bond. The purpose of the bond is to utilize excess liquidity in the market to support the development of the nation. The auction and issuance of the bond is done on the day specified by the Open Market Operation Committee.

3. Citizen Saving Bond:
These types of bond are issued only for Nepalese citizen and contain fixed coupon rate of return. It is issued through auction process, for mid-term, for the purpose of collection of internal debt to support the financial development of nation. The auction and issuance of the bond is done on the day specified by the Open Market Operation Committee.

4. National Saving Bond:
National Saving Bonds are issued to fund the mid-term requirement of the government. Non-bank financial institution and Nepalese citizen can only purchase this type of bond.

5. Foreign Employment Saving Bond:
This bond is designed to provide opportunity of investment for citizens working abroad or those who are returned but the duration has not crossed three months or Non Residential Nepali (NRN). The investment must be done in Nepali currency (NRs.) and provides fixed coupon rate. The purpose of the bond is to encourage the citizens to invest in bonds of Nepal Government. All the processes relating to the bond is carried out by the agent licensed by NRB. The voucher of the transfer of money to Nepal from abroad must be presented while applying for the purchase of the bond.

While applying for any bonds or treasury bills, the applicant must clearly mention the amount of purchase and personal details and must be signed properly in case of individual and stamped by organization. The information about the issue of bonds are prior to the issuance and as per the regulation of NRB. In case of under aged, the bonds can be applied with the combined names of parent. All the required form and additional details are available in the Public Dept section of the website of Nepal Rastra Bank.