HomeBankASBA / CASBA Charges of Banks in Nepal.

ASBA / CASBA Charges of Banks in Nepal.

If you are applying for an Initial Public Offering (IPO), you may already be aware of the C-ASBA charge that is debited from your bank account. This ASBA or C-ASBA charge is not regulated and hence varies between banks. It is not the same in all banks; just a few charge no CASBA fee, many charge Rs. 10 to Rs. 20, and others charge up to Rs. 100 for every application. Because it is payable while applying for an IPO, many Nepalese refer to the ASBA/CASBA charge as the IPO charge.

In this article, we will learn about the ASBA/CASBA fees charged by several commercial banks in Nepal. And do you know why the bank charges the CASBA fee when you apply for an IPO?

What is ASBA?

ASBA stands for Application Supported by Blocked Amount. When applying for the purchase of publicly traded shares, ASBA withholds a sum equivalent to the value of the securities applied from the investor’s bank account.

This implies that the sum invested is held in the investors’ bank account until the securities (shares/debentures) are issued. Following allotment, the allotted amount is withdrawn from his/her respective bank account, and any remaining blocked funds are released.

What is C-ASBA?

CDS & Clearing created integrated software C-ASBA to make the ASBA system more structured, accessible, and efficient. Previously, ASBA member banks and financial organizations may apply using their own software. Since Falgun 11, 2074, the C-ASBA system has been in operation.

C-ASBA offers a consolidated system by connecting all banks and financial organizations that provide ASBA-related services and the beneficiary account (Demat account). This enables the verification of the investors’ bank account information prior to entering the investors’ applications.

ASBA/ C-ASBA Charges of Commercial Banks in Nepal?

Currently, many banks in Nepal that offer ASBA services can levy ASBA fees of up to Rs. 5 per application. But in 2022, most of the commercial banks in Nepal have increased their charges from Rs. 5 to up to 100 for each application for ASBA. There are also some commercial banks that do not take ASBA fees.

S.N.Bank NameSymbolASBA Charges
(NPR.)
1.Agriculture Development Bank Ltd.ADBL10
2.Bank of Kathmandu Ltd. BOKL10
3.Century Commercial Bank Ltd. CCBL 25
4.Citizen Bank International Ltd. CZBIL 20
5.Civil Bank Ltd. CBL 20
6.Everest Bank Ltd. EBL 20
7.Global IME Bank Ltd. GBIME 15
8.Himalayan Bank Ltd. HBL 20
9.Kumari Bank Ltd. KBLFree
10.Laxmi Bank Ltd. LBL 25
11.Machhapuchhre Bank Ltd. MBL 10
12.Mega Bank Nepal Ltd. MEGA 25
13.Nabil Bank Ltd. NABIL Free
14.Nepal Bank Ltd. NBL Free
15.Nepal Credit and Commerce Bank Ltd. NCCB 10
16.Nepal Investment Bank Ltd. NIB 20
17.Nepal SBI Bank Ltd. SBI 25
18.NIC Asia Bank Ltd. NICA Free
19.NMB Bank Ltd. NMB 20
20.Prabhu Bank Ltd. PRVU 10
21.Prime Commercial Bank Ltd. PCBL 20
22.Rastriya Banijya Bank Ltd. RBB Free
23.Sanima Bank Ltd. SANIMA Free
24.Siddhartha Bank Ltd. SBL Free
25.Standard Chartered Bank Nepal Ltd. SCB 100
26.Sunrise Bank Ltd. SRBL 10
*NOTE: Banks periodically alter the ASBA/C-ASBA fee. Please let us know if you spot any errors in the comments area below.

Many banks that formerly provided free C-ASBA services have begun to demand a fee for this service. The reason for this is that numerous firms are currently launching initial public offerings. Similarly, the number of investors applying for IPOs has skyrocketed. This enables banks and financial organizations to generate simple money through the C-ASBA service.

A bank that can gather 100,000 applications may now earn NPR. 5 lakhs for every IPO from the service that was previously provided for free. As a result, we might witness a change in IPO charges in Nepal.

ASBA/ C-ASBA Charges of Development Banks in Nepal?

S.N.Bank NameSymbolASBA Charges
(NPR.)
1.Garima Bikas BankGBBL10
2.Kamana Sewa Bikas BankKSBBL20
3.Lumbini Bikas BankLBBL10
4.Mahalaxmi Bikas BankMLBL10
5.Muktinath Bikas BankMNBBL10
*NOTE: Banks periodically alter the ASBA/C-ASBA fee. Please let us know if you spot any errors in the comments area below.

Banks that offer Free ASBA/ C-ASBA Charges in Nepal?

  • Kumari Bank Limited
  • Nabil Bank Limited
  • Nepal Bank Limited
  • NIC Asia Bank
  • NMB Bank Limited
  • Rastriya Banijya Bank
  • Sanima Bank Limited
  • Siddhartha Bank Limited

FAQs

What is the difference between ASBA and C-ASBA?

ASBA stands for Application Supported by Blocked Amount. When applying for the purchase of publicly traded shares, ASBA withholds a sum equivalent to the value of the securities applied from the investor’s bank account whereas, CDS & Clearing created integrated software C-ASBA to make the ASBA system more structured, accessible, and efficient.

Is ASBA required for all Investors?

Yes, All retail traders who file for IPOs must go through the ASBA procedure.

Which bank offers free ASBA?

Kumari Bank Limited
Nabil Bank Limited
Nepal Bank Limited
NIC Asia Bank
NMB Bank Limited
Rastriya Banijya Bank
Sanima Bank Limited
Siddhartha Bank Limited

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