The Deposit and Credit Protection Fund (DCPF) has announced plans to invest NPR 4.66 billion from its reserves held across various banks. The investment will be available to eligible Class C licensed banks authorized by the Nepal Rastra Bank (NRB), which can access the funds by Kartik 24 (November 9-10, 2025).

The fund has set strict eligibility criteria for banks seeking to utilize this investment. Banks must have been in operation for at least five years and have recorded profits continuously over the past five fiscal years. They must also maintain the minimum capital fund as prescribed by NRB, keep non-performing loans below 8% of total loans, and hold at least 20% of net liquid assets in domestic deposits.

Furthermore, banks must comply with NRB’s prescribed capital adequacy, loan-deposit ratio, and other regulatory limits. Any past actions or warnings issued by NRB against the bank or its executives must have been resolved at least six months prior, and any remedial actions must have been lifted for a minimum of three months.

Other conditions include:

• The bank must not have been declared problematic under Section 86 of the NRB Act, 2058, or if previously declared, at least six months must have passed since the resolution.
• Banks not owned by the Government of Nepal must have issued shares to the public and be listed on the Nepal Stock Exchange.

The DCPF retains the right to decide whether or not to invest in any bank, even if it meets all conditions. Banks willing to receive the investment must submit a self-declared bid along with supporting documentation, including quarterly published financial indicators. If certain financial indicators are reported monthly, they must be certified by the bank’s internal auditor.

This move by the Deposit and Credit Protection Fund aims to strengthen eligible banks’ capital base while ensuring compliance with regulatory standards and financial stability.