NRB unveils monetary policy for upcoming fiscal year, reduces interest spread (with full text)
July 11, 2018 04:32 PM NPT
KATHMANDU, July 11: Nepal Rastra Bank has reduced the spread in interest rate to 4.5 percent from 5 percent. Unveiling the monetary policy on Wednesday, according to the central bank, now the interest gap between the savings and the loan provided by banks will be 4.5 percent from the new fiscal year. Currently, the interest spread is 5 percent. NRB has reduced the interest spread after five years. However, for the microfinance, the spread is to be maintained at 6 percent.
Likewise, the central bank has unveiled that the commercial banks have to rate the credit from the upcoming fiscal year. According to the policy, the banks can now do credit rating from the national or international rating agency.
Similarly, the commercial banks can request for the approval from NRB to receive broker license. The banks can establish a subsidiary company to get permission for a broker license.
Likewise, in the new fiscal year, the CRR for commercial banks, development banks and finance companies will be 6%, 5% and 4% respectively. This will create Rs 48 billion worth of extra liquidity in the banking system.