If you’re interested in investing in Initial Public Offerings (IPOs) in Nepal, you might want to know the fees banks charge for their services.
In this article, we’ll look closer at the service fees for ASBA/C-ASBA charges of Nepali banks in 2023.
According to the rule set by SEBON, banks can now only charge a maximum of रू5 on each IPO application. Some banks have free CASBA services.
Information: C-ASBA Charges in Nepal
ASBA stands for Application Supported by Blocked Amount. It automatically blocks the money from your bank account when you apply for an IPO. After Allotment, it only deducts the amount allotted for the investor, and the rest is released.
C-ASBA is a slightly more advanced form of ASBA, as it centralizes the posting and verifying of bank and DEMAT account numbers. This will help issue managers and share registrars monitor double applications. Making their job easier to disqualify those who are applying for IPO using 2 different accounts.
Banks charge these one-time fees when you apply for an IPO in Nepal. Also, these are Non-refundable, meaning you will not get your money back even if you are not allotted that IPO.
List of C ASBA charge Free Banks in Nepal 2023
To avoid paying ASBA/C-ASBA charges, you can apply for IPOs through a C-ASBA charge-free bank in Nepal. These banks do not charge any fees for their services, which can save you some money.
| Banks Name | C-ASBA Charge |
|---|---|
| NIC Asia Bank | Free |
| Nabil Bank | Free |
| Rastriya Banijya Bank | Free |
| Siddhartha Bank | Free |
| NMB Bank Ltd | Free |
| Sanima Bank | Free |
Choosing a bank that provides free ASBA service is important because the chances of getting an IPO are low, and banks do not refund money.
Note: Some banks listed above will give free service for new registration and a year only.
Read: NMB SIP Registration Process from Nepal and Abroad
ASBA Charges of Nepali Commercial Banks in 2023
As you can see, the charges vary and differ from bank to bank. Rs. 10 is the cheapest and Rs. 100 is the most expensive. IPO allocation is completely random, and if you think paying a high price for CASBA will get you allocation, then that is a complete waste.
You will need to pay a fee called the (ASBA/C-ASBA charge) to the bank for their services, which is रू5 for every application.
Below are the charges Nepalese commercial banks take when you apply for an IPO in Nepal.
| Banks | Previous Fee | New Fee |
|---|---|---|
| Prabhu Bank Ltd | Rs. 10 | रू1 |
| Garima Bikas Bank | Rs. – | रू5 |
| Nepal Bank Limited | Rs. – | रू5 |
| Kumari Bank | Rs. – | रू5 |
| Sunrise Bank | Rs. 10 | रू5 |
| Prime Commercial Bank | Rs. 10 | रू5 |
| Agricultural Development Bank | Rs. 10 | रू5 |
| Global IME Bank | Rs. 15 | रू5 |
| Himalayan Bank | Rs. 20 | रू5 |
| Everest Bank | Rs. 20 | रू5 |
| Nepal Investment Mega Bank | Rs. 20 | रू5 |
| Citizen Bank International | Rs. 20 | रू5 |
| Laxmi Bank | Rs. 25 | रू5 |
| Nepal SBI Bank | Rs. 25 | रू5 |
| Century Commercial Bank | Rs. 25 | रू5 |
| Standard Chartered Bank | Rs. 100 | रू5 |
Apply for an Upcoming IPO in Nepal in 2023
CASBA Charge of Development Bank & Finance in Nepal
| Banks | CASBA Charges |
|---|---|
| Lumbini Bikas Bank | Rs. 10 |
| Muktinath Bikas Bank | Rs. 10 |
| Mahalaxmi Bikas Bank | Rs. 10 |
| Kamana Sewa Bikas Bank | Rs. 20 |
| ICFC Finance | Rs. 25 |
Conclusion
In the end, people have their own choices and will pay even if there are financial institutions that offer free services. Based on your research, it is completely up to you which bank to choose, as Banks are not just for applying IPOs but for other services too.
Note: These amounts might change in the near future, and we have no control over this. Please visit your respective Bank’s website for updated data. Also, suggestions are welcomed in the comment section. Thank You!
Frequently Asked Questions about CASBA
You can visit your bank’s nearest branch and ask CASBA form and fill it out. Or just visit your bank’s website and download the form, fill it up and deposit it. Also usually, while opening Demat and Mero share accounts, the bank will give you a CASBA form to fill up. It is mandatory.
No, you can download the form, but eventually, you will need to visit your bank. Here is a sample of the C-ASBA Form. “NMB CASBA Form Online“
CRN stands for CASBA Registration Number
CRN connects your Bank and Demat account number; because of this, banks can block the amount of money you have applied for the Initial Public Offering. Also, every CRN number of every individual is unique.
As of 2023 there are eight banks that will not charge any amount when you apply for IPO in Nepal and they are:
- NIC Asia Bank
- Nabil Bank
- Rastriya Banijya Bank
- Garima Bikas Bank
- Siddhartha Bank
- NMB Bank Ltd
- Nepal Bank Limited
- Sanima Bank Kumari Bank
No, CASBA charges are non-refundable. Once it is deducted, you will not get your money back.
In 2023, the highest a Bank can charge is रू 5.
Thank you for the update, NBL charges NPR 5 as CASBA per application.
Nepal Bank Limited takes Rs.5 for every IPO applied. It’s not free.
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I was confused which bank to choose for Demat account.