Kathmandu; Nepal Rastra Bank has issued a circular to the BFIs to amend their interest rates for the current month Kartik.
The central bank has interven in the fixation of interest rates offered by bank and financial institutions (BFIs). It has issued a circular to all BFIs and instructed to amend their interest rate within the limit of 10 per cent fluctuations from last month’s interest rate.
As per the circular, the new interest rate will be effective from Wednesday.
BFIs have offered interest rate over 11 per cent against fixed deposit and above 6 per cent on normal saving deposit.
It has also directed to offer at least 1 per cent lower interest rate to the institutional client than the individual depositors.
The central bank seems to be reactive regarding the fixation of interest rates on saving and credit as the BFIs are in unhealthy competition through surge in interest rate. The private sector also asked the Government of Nepal to intervene the incresed interest rate to control the price of goods and services.