Interest rate on deposit reduced to single digit

Kathmandu: Nepal Bankers Association (NBA) has decided to reduce the interest rate on deposit to single digit.

The meeting of Nepal Bankers’ Association held on Wednesday has decided to reduce the interest rate on deposits to single digit.  The new interest rate will come into effect from April 14.

As per the decision, the interest rate on individual fixed deposits will be reduced by 1.01 % to keep it at 9.99% from April 14. Santosh Koirala, vice-president of bankers’ association, said that decision was also made to reduce the interest rate on institutional fixed deposits to 7.99%.

Koirala also said that the minimum and maximum interest rates on savings will be kept at 5.4% and 7.4 respectively. According to him, the interest rate on call deposit will not exceed 50 % its lower limit. As of now, the banks are providing 6 to 8% interest rate on savings.

Though the interest rate on deposit has come down to single digit, the banks have to provide 10.99 % of interest on remittance deposit and 8.4% on remittance savings in accordance with the decision of Nepal Rastra Bank.