Kathmandu. Commercial banks have made the interest rates for the month of Baisakh public. In Baisakh, most banks have kept the interest rates of the month of Chaitra unchanged. The average interest rate on individual term deposits of banks for the month of Baisakh has been fixed at 5.98 percent, while it was 6 percent in the month of Chaitra.
According to the new interest rate announced to be effective from Baisakh 1, the interest rates of individual term deposits of 3 banks have decreased, while 1 bank has increased, while 17 banks have continued the interest rates of the month of Chaitra.
Banks had made arrangements to reduce or increase interest rates as needed, leaving the polite agreement on interest rates since the month of Shrawan. Nepal Rastra Bank has made arrangements for banks and financial institutions to make the interest rates of the coming month public by the middle of every month. Banks have the facility to increase or decrease the interest rate of the previous month by up to 10 percent by setting a new interest rate every month.
Currently, there is a provision that institutional deposits can be given only one percent lower interest than individual deposits. The Nepal Rastra Bank, through its semi-annual review of monetary policy, had given the facility of giving only 1 percent lower interest rate to institutional depositors instead of the old provision of giving 2 percent lower interest. This has benefited insurance companies.
The Nepal Rastra Bank has imposed a rule that the difference between the upper limit of individual term deposits and the minimum interest rate of savings cannot be more than 5 percent. Therefore, as the maximum interest rate of individual term deposits decreases, the interest rate of savings and call deposits will continue to decrease. As interest rates on all types of deposits accepted by banks decrease, interest rates on loans will also have to decrease.
प्रतिक्रिया दिनुहोस्