KATHMANDU, August 7: Commercial banks have agreed on not revising the interest rate until mid-October, citing the rules recently enforced by Nepal Rastra Bank (NRB).
According to bankers, a meeting of Nepal Bankers’ Association on Friday decided not to change the interest rate on deposits for the prescribed period. On an average, banks have been offering interest rates of 11.03 percent per annum on fixed deposits of individuals. In the case of institutional depositors, the interest rate is 9.03 percent per annum.
Last week, NRB issued a circular allowing banks to revise the interest rate on deposits every month if they like. But the banks can change lending rates only on a quarterly basis.
“We have consented to keep the interest rate fixed as raising the interest rate of deposits only increases the banks’ costs due to the new rule of the central bank,” a banker said.