header banner
ECONOMY

NRB starts investigation on BFIs misusing benefits of remittance account to lure depositors with high interest...

KATHMANDU, Nov 9: Nepal Rastra Bank (NRB) has asked banks and financial institutions (BFIs) to send the details of remittance based deposit accounts in order to investigate the undue benefits that the...
By Republica

KATHMANDU, Nov 9: Nepal Rastra Bank (NRB) has asked banks and financial institutions (BFIs) to send the details of remittance based deposit accounts in order to investigate the undue benefits that the BFIs have been taking using this type of accounts.  


The central bank has stepped up the move after it received a number of complaints over the issue. BFIs are reported to be collecting deposits from local people and organizations by offering benefits of the remittance account being provided by NRB.


Related story

Revised interest rate corridor system introduced


To attract migrant workers to deposit their money in the country’s BFIs, NRB has allowed the BFIs to provide one percent more interest on such deposits compared to the normal deposits. Under the provision, the BFIs now provide an interest rate of 10.133 percent per annum on a savings account, while they provide an interest rate of 13.133 percent per annum on fixed deposits of the remittance account.   


However, many BFIs are found making their local clients self-declare the money to be deposited as the ones earned through foreign employment. The BFIs have been found using this pretext to lure other depositors amid ongoing crisis of the loanable funds. 

Related Stories
ECONOMY

Interest rates unlikely to fall anytime soon

ECONOMY

BFIs told to lower lending rates under refinance f...

ECONOMY

NRB in no mood to give in to private sector’s dema...

ECONOMY

NRB does not intervene to fix interest rates of ba...

ECONOMY

NRB permits BFIs to alter interest rates on monthl...