Kathmandu, November 15
With the liquidity crunch at banks and financial institutions, the Nepal Rastra Bank (NRB) on Sunday issued a fresh directive on interest rates.
The central bank issued the new directive by amending the existing Integrated Directive.
The central bank says the directive issued on October 20 was further revised and made systematic in regard to the interest rates.
Prior to this, the BFIs were allowed to change a maximum of 10 per cent in the interest rates of the bank deposits as compared to the rate released in the previous month. But, as per the recent update, the BFIs can only change a maximum of 10 per cent in the interest rates on average (except for call deposit) by calculating the average and minimum interest rate released in the previous month.
If the spread rate is more than the given cap, the other rates shall be adjusted by making a basis either to the maximum or minimum interest rates.
Likewise, the NRB has scrapped the provision for BFIs to increase interest rates up to 0.5 per cent points for the deposits except for call deposit and institutional fixed deposit.