KATHMANDU, DECEMBER 13
Commercial banks have decided not to revise interest rates for deposits from to mid-December to mid-January.
A meeting of the members of Nepal Bankers' Association (NBA) held on Monday decided to leave the deposit interest rate unchanged for next month.
According to Anil Sharma, executive director of the NBA, the board meeting decided not to revise the deposit interest rate next month as the financial market is relatively stable at present.
"Currently, the financial market is stable and if we change the interest rate, it could cause market volatility," Sharma told The Himalayan Times.
"Moreover, in between mid-December and mid-January, factors such as advance tax payment, maturating of refinancing facility and government's local funds could prompt market stress. Hence, we decided to maintain the interest rate of deposit to stabilise the market," he added.
Lately, the private sector has been launching protests against the high interest rates of the banks.
As a result, the commercial banks that had been raising interest rates on deposits have maintained the same rate since mid-October.
This means commercial banks will provide maximum interest rate of 12.133 per cent on personal savings deposits for the coming month.
Similarly, the maximum interest rate for institutional saving deposits has been maintained at 10.133 per cent, 7.133 per cent for general savings deposits, and 9.13 per cent for deposits on remittance savings.
A version of this article appears in the print on December 14, 2022, of The Himalayan Times.
