Commercial banks agree to keep interest rates unchanged until mid-April – myRepublica
KATHMANDU, March 13: Commercial banks have agreed not to raise the interest rate on their deposits from mid-March to mid-April.
A meeting of the Nepal Bankers Association (NBA) held on Friday decided to give continuity to the existing interest rate that banks have been charging since last month. With this decision, the banks’ interest rate on the general deposit will be maintained at a maximum of 12.03% by mid-April.
With the exception of Standard Chartered Bank Nepal (SCBN), the other 26 commercial banks offer an interest rate of 11.03% per annum on fixed deposits to individual depositors. The interest rate is 10.03% per annum for institutional depositors. The SCBN has granted interest of 9.5% per annum on retail fixed deposits, while interest on institutional deposits is 8.5%.
The interest rate on fixed deposits based on remittances is 12.03% per annum. Similarly, the interest rate on savings accounts has been set at 5% lower than the interest rate on time deposits while the interest rate on demand deposits is maintained at 3.015% by year.
The stable deposit interest rate is likely to keep the lending rate unchanged, which will greatly benefit borrowers. The last time, the banks raised the interest rate starting in mid-February.