KATHMANDU, NOVEMBER 14
With the liquidity crunch in the financial institutions, the Nepal Rastra Bank (NRB) today issued a fresh directive to the bank and financial institutions (BFIs) by amending to the Integrated Directive, 2020.
The central bank said that the directive issued on October 20 was further revised and made systematic in regard to the interest rate.
Prior to this, the BFIs were allowed to change maximum of 10 per cent in the interest rate of the bank deposit as compared to the rate released in the previous month.
As per recent update, the BFIs can only change maximum of 10 per cent in the interest rate in average (except for call deposit) by calculating the average and minimum interest rate released in the previous month. If the spread rate was more than the given cap, the other rates should be adjusted by making a basis either to the maximum and minimum interest rate.
Likewise, the NRB has scrapped the provision for BFIs to increase interest rate up to 0.5 percentage point for the deposits except for call deposit and institutional fixed deposit.
A version of this article appears in the print on November 15, 2021, of The Himalayan Times.