Kathmandu, February 22
The average gap between interest rates imposed by banks for saving accounts and fixed deposit accounts has reached the historic low in Nepal. The central bank of the country, therefore, says its years-long efforts have now materialised.
All commercial banks have given 11 per cent interest for people depositing money in fixed deposit accounts. Earlier, Nepal Bankers Association, consisting of operators of commercial banks, had decided that the interest rate for fixed deposits be restricted to 11 per cent. Since then, the banks have been increasing interest rate for saving account regularly.
“It is our success. We were stating that there was a huge gap between interest rates for two accounts,” says Nepal Rastra Bank Executive Director Nar Bahadudr Thapa.
Just around a year ago, the average interest rate for saving account was 2-3 per cent whereas the one for fixed deposits was 9-10 per cent.
The central bank had argued that the huge gap between two interest rates would give profits to the rich only.
