Kathmandu, January 21:

Commercial banks are not only competing to provide services to their clients but also of late joining hands to provide added advantagees to their customers.

Bank of Kathmandu (BoK), Himalayan Bank Ltd (HBL) and Laxmi Bank Ltd (LBL) — the three leading commercial banks — today signed a Memorandum of Understanding to provide extended banking services and explore new business opportunities.

BoK MD Radhesh Pant, HBL CEO Ashoke SJB Rana and LBL CEO Suman Joshi signed the pact on behalf of their respective institutions. According to the accord, customers of any one of these three banks from February 1, can deposit and withdraw or deposit money. In addition to this, customers of one bank can use network of the other two banks to transfer money from any branch.

However, the amount capped is Rs 5,00,000 for honouring cheques. Thus, customers of all three banks can have cheques up to Rs 5,00,000 amount honoured from any of the branches of the other two banks as they would from their own bank.

Customes will only have to bear a minimal charge to avail these services, said the banks.