What is Citizen Savings Certificate? How to buy

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Citizen Savings Certificate is a government bond used to raise medium and long term internal debt. Currently, the citizen savings certificates expelled from the department are for a period of 5, 10 and 12 years. The Government of Nepal determines the term of this savings certificate as required. In order to mobilize the small savings scattered in the economy, it is necessary to mobilize financial resources for the development of the country by providing safe investment with fair return to the common Nepali citizens. Citizen Savings Certificates are withdrawn from the OTC process within the specified period.

The sale of Citizen Savings Bonds is open, closed and issued on the date specified by the Open Market Operations Committee. Information about that is published in newspapers and on websites. The term of the Citizens Savings Certificate and the fixed interest rate to be paid on it is as prescribed by the Government of Nepal.

Who buys & Why to buy ?

Only ordinary Nepali citizens can buy citizen savings certificates. A minimum of Rs. 10,000 and a maximum of Rs. During the primary eviction, there will be an office of Nepal Rastra Bank outside the valley and a market maker sales manager.

At the time of primary eviction, the application form can be downloaded from the Nepal Rastra Bank’s website or available through the Nepal Rastra Bank’s office or market maker outside the valley. Citizen Savings Certificate Purchase Application Form and the amount you want to purchase can be submitted to market makers across the country as well as Nepal Rastra Bank’s offices outside the Valley.

In order to purchase Citizen Savings Certificate, along with the application, a copy of citizenship, in case of purchase in the name of the minor, a copy of the birth certificate of the minor and other prescribed documents should be submitted.

If the application is less than or equal to the invoice amount, then according to the demand and in case the application is received for the amount more than the invoice amount, it is distributed according to the decision of the open market operation committee. The fragmented term interest is paid along with the application for the period of interest from the date of remittance to the day before the date of issue.The secondary market for citizen savings certificates can be traded through market makers across the country as well as Nepal Rastra Bank’s offices outside the Valley.

What are the service facilities?

Information on issuance of Citizen Savings Certificates is published on the website of Nepal Rastra Bank (www.nrb.org.np), national level dailies and online magazines. Successful applicants are provided with a certificate in the prescribed format as proof. Such certificate is provided in the form of promissory note or stock from the office where the application is submitted. The application form should state whether to take promissory note or take stock. In case of non-disclosure, only promissory note will be provided.

The interest on Citizens Savings Certificate is paid semi-annually and the principal is paid on the due date. Interest calculation method When calculating the interest rate fixed for citizen savings certificate, 360 days equals one year and 30 days equals one month. Interest earned on investments made in citizen savings certificates is subject to income tax.Certificate of Use Citizen Savings Certificate Before the date of payment, there is an arrangement to take loan by pledging in other banks and financial institutions besides this bank. When investing in Citizen Savings Certificate, you can get interest in 6 months, you can sell it at any time or you can take a loan with collateral, there is no risk of investment amount and you can be indirectly involved in the development work of the country.

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