The Nepal Rastra Bank has issued letters of intent to three new banks: Siddhartha Bank, Laxmi Bank and the Export-Import Bank of Nepal. The three had applied to set up banking operations in 1995. Of the three the Export Import Bank will have an authorised capital of Rs 2 billion (paid up one billion) and the Kathmandu-based Siddhartha Bank, Rs 1 billion (paid up Rs 500 million). The Laxmi Bank will be based in Birgunj and is to have an authorised capital of Rs240 million. NRB rules stipulate that these ventures must begin banking operations within one year of receiving a letter of intent?that is by September 13, 2002. One year after they start operations, the banks are required to issue shares to the public.