KATHMANDU, Aug 2: The government has fixed the ceiling of interest rate charged by the cooperatives at 16 percent, informed Ministry for Land Management, Co-operatives and Poverty.
The Registrar of Co-operatives Division Dr. Tokraj Pandey said that interest rate was fixed following the recommendation of Interest Rate Fixation Committee that took into account the existing interest rates charged by banks and financial institutions in determining the new interest rate applicable to cooperatives.
Organizing a press meet in Kathmandu on Friday, Registrar Pandey informed that the new provision will be effective from August 4, 2019. He also clarified that difference between saving and interest rates has been reduced to less than six percent.
The government had formed a ten-member committee entrusted with the responsibility of fixing the new interest rate applicable to cooperatives under the coordination of Registrar Pandey.