Central Bank prohibits banks to offer gifts to customer

Kathmandu:Banks and financial institutions are no more allowed to offer any gifts to their customers or operate a gift scheme to collect deposits.

Banks and financial institutions have been offering gold, silver, diamonds, mobiles, motorcycles and other commodities as gifts to attract deposits.  NRB has prohibited it through amendments made to the integrated directives for Bank and Financial Institutions.

Also, according to the new provision, the difference in interest rate in different types of savings accounts is limited not to be more than two per cent.

Similarly, BFIs are also prohibited from providing any type of financial services unilaterally without the written permission of the customer. If any service charge has been deducted without the prior consent of the customer, an additional 10 percent of the amount of such charge must be credited to the customer’s account. This provision has curbed the misuse of fees by banks and financial institutions under various headings.

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