Kathmandu: The Nepal Rastra Bank(NRB) has slashed the spread rate of bank and financial institutes(BFIs). After the first quarter’s review of the current financial year, the central bank has decided to slash the spread rate of loan and deposit to relieve the market from high interest cost.
NRB has slashed the spread rate of commercial banks from 4.4 percent to 4 percent and 5 percent to 4.6 percent for development banks and financial institutions. Prior to the monetary evaluation of the NRB, the development banks have already slashed their interest rate by 10 per cent point from 1 Mangsir 2079. Now, the commercial banks are expected to slash their interest rate on deposit and lending.
The central bank has also warned the BFIs that the execution of interest premium by the BFIs will be closely monitored.