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 have listed detailed service fees for ASBA/C-ASBA charges of Nepali banks.
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.
What is C-ASBA and Why do Banks charge it?
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 charges C-ASBA as one-time fees when you apply for an IPO in Nepal. These are Non-refundable, meaning you will not get your money back even if you are not allotted that IPO.
List of Banks that provide free C-ASBA service in Nepal
To avoid paying ASBA/C-ASBA charges, you can apply for IPOs through 4 Banks listed below that does not charge any fees in Nepal.
| Banks Name | C-ASBA Charge |
|---|---|
| NMB Bank Ltd | Free |
| Nabil Bank | Free |
| Rastriya Banijya Bank | Free |
| Siddhartha 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.
NIC Asia has started chanrging Rs.5 for ASBA sevice.
Read: NMB SIP Registration Process from Nepal and Abroad
List of C-ASBA Charges of Commercial Banks in Nepal [Updated]
As you can see, the charges vary 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 | Rs.5 [Updated] |
| NIC Asia Bank | Free | Rs.5 [Updated] |
| Sanima Bank | Free | Rs.5 [Updated] |
| 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 |
Related: Upcoming IPO in Nepal
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. Suggestions are also welcome in the comment section. Thank You!
Frequently Asked Questions
How to fill CASBA form in Nepal?
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 out, and deposit it. Also, usually, while opening Demat and Mero share accounts, the bank will give you a CASBA form to fill out. It is mandatory.
Can I fill CASBA application form online?
Yes, most Banks provide online applications for CASBA, but you must visit your bank if they do not support it.
How much does CSBA charge for IPO application?
The highest a Bank can charge is रू 5.
Will I get a refund if an IPO is not allotted to me?
No, CASBA charges are non-refundable. Once it is deducted, you will not get your money back.
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.
Thanks for the info.
I was confused which bank to choose for Demat account.